Metal Stocks Outlook
Seen in range next week ahead of Oct-Dec earnings
This story was originally published at 20:39 IST on 3 January 2025
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MUMBAI – Shares of metal companies are seen in a range next week amid caution ahead of the December quarter earnings and uncertainty around Donald Trump's policies, who is set to take charge as US President on Jan. 20. Analysts expect poor earnings for steel-makers in the December quarter due to low product prices and wait for any support from the government on duty against cheap imports from China.
Steel prices have fallen to a four-year low due to poor Chinese demand despite a series of stimulus measures by Chinese authorities, IDBI Capital said in a report. Although demand for steel in the domestic market remains strong, prices are a problem for the industry, the brokerage said.
The brokerage expects product prices may rise if the government imposes a 25% duty against imports. "Despite this, the rich valuations of steel companies limit the potential upside. Hence, we maintain a neutral outlook on the steel sector," it said.
Emkay Global Financial Services said they don't expect the government to impose a 25% duty at one go, considering such a move will lead to inflation. The brokerage said the pace of fall in prices in China is coming down and the earnings of Indian steel manufacturers may recover sometime this year.
The Nifty Metal index rose just 0.1% this week amid a lack of triggers. Shares of Adani Enterprises rose 6% this week, while those of Jindal Steel & Power and Hindustan Zinc rose 4% and 3%, respectively. Shares of Jindal Stainless fell nearly 8% and those of Hindalco Industries declined 4%.
TOP HEADLINES
* Western Carriers gets order worth INR 1.39 bln from Vedanta
* Govt says incorporated 151 BIS standards for steel in Quality Control Oorder
* Hind Zinc Oct-Dec mined metal output falls 2% on yr, wind power down 14%
* Lloyds Metals posts highest ever provisional iron ore output in Apr-Dec
* APL Apollo Tubes posts highest ever quarterly sales Oct-Dec, up 37.2% on yr
* NCLT approves Jharkhand Vidyut Vitran Nigam's resolution plan for Tayo Rolls
* SBICAPS releases 51.56 mln pledged shares of Hindustan Zinc
* Govt allocates Meenakshi coal mine in Odisha to Hindalco
* India Ratings cuts NMDC Steel's rating outlook to negative from stable
Following are the resistance and support levels for the stocks for next week as per calculations by Informist based on their prices on the National Stock Exchange:
| Company | Price | Week-on-week change in % | Resistance | Support |
| Hindalco Industries | 591.15 | (-)4.30 | 603.40 | 583.90 |
| Hindustan Copper | 250.23 | (-)2.40 | 259.90 | 243.70 |
| Hindustan Zinc | 469.15 | 3.20 | 485.80 | 442.50 |
| Jindal Steel & Power | 957.85 | 3.70 | 975.90 | 930.30 |
| JSW Steel | 915.05 | 0.20 | 932.30 | 899.90 |
| Jindal Stainless | 677.60 | (-)7.90 | 696.90 | 665.70 |
| National Aluminium Co | 208.00 | (-)2.60 | 222.20 | 199.90 |
| NMDC | 67.66 | (-)2.40 | 69.00 | 66.80 |
| Steel Authority of India | 114.17 | (-)1.20 | 116.90 | 112.10 |
| Tata Steel | 138.36 | (-)0.40 | 140.50 | 136.80 |
| Vedanta | 458.25 | 1.60 | 474.00 | 441.20 |
| Nifty Metal | 8729.95 | 0.10 | 8858.90 | 8646.40 |
| Nifty 50 | 24004.75 | 0.80 | 24279.50 | 23838.60 |
| BSE Sensex | 79223.11 | 0.70 | 80431.90 | 78505.40 |
End
Reported by Anshul Choudhary
Edited by Saji George Titus
With inputs from Akshita Kumar
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