Metal Stocks Outlook
Seen in range next wk; JSW Steel Oct-Dec earnings eyed
This story was originally published at 22:27 IST on 17 January 2025
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MUMBAI – Shares of metal companies are expected to be range-bound next week amid caution during the December quarter earnings. Market participants will look forward to the earnings of JSW Steel Ltd. next week, which will be among the initial companies in the sector to report their quarterly results.
Metal stocks rose this week due to the depreciation of the rupee, positive global cues such as the cease-fire deal between Israel and Hamas, and lower panic selling, an analyst tracking the metal sector at a broking firm said.
JSW Steel is scheduled to report its December quarter results on Jan. 24. The company is expected to report a consolidated net profit of INR 6.59 billion for the quarter, down 72.7% on year, an average of estimates from 10 brokerages showed. Among the 10 brokerages, Systematix Shares and Stocks (India) has projected the highest net profit of INR 9.2 billion and Nuvama Insitutional Equities has estimated the lowest net profit of INR 3.2 billion. The company's consolidated top line is seen falling 3.3% on year to INR 405.74 billion for the December quarter, according to the estimates.
Brokerage firm Nuvama late Thursday upgraded Hindalco Industries to 'buy' from 'hold' and raised the target price by 5% to INR 776. The stock's upgrade was one of the reasons behind the surge in the stock price Friday, the analyst said. Friday, shares of the company ended at INR 617 on the National Stock Exchange, up 2.4%. The stock was one of the top performers in the Nifty 50 index Friday.
The Nifty Metal index rose 3.1% this week, compared to a decline of 5.4% last week. Shares of Hindalco Industries rose 7.4% this week. Shares of NMDC, Steel Authority of India, and Tata Steel rose 5.7%, 2.6%, and 2.2% each this week.
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Following are the resistance and support levels for the sector's key stocks for next week, as per calculations based on their prices on the National Stock Exchange:
| Company | Price | Week-on-week change in % | Resistance | Support |
| HINDALCO INDUSTRIES LTD | 617.00 | 7.40 | 628.50 | 597.90 |
| HINDUSTAN COPPER LTD | 247.69 | 6.20 | 265.00 | 222.00 |
| HINDUSTAN ZINC LTD | 456.85 | 5.40 | 465.60 | 449.60 |
| JINDAL STEEL & POWER LTD | 924.65 | 0.80 | 941.00 | 904.40 |
| JSW STEEL LTD | 908.60 | 0.90 | 922.70 | 898.20 |
| JINDAL STAINLESS LTD | 634.35 | 1.40 | 648.40 | 613.60 |
| NATIONAL ALUMINIUM CO LTD | 205.54 | 1.60 | 212.50 | 193.50 |
| NMDC LTD | 66.63 | 5.70 | 68.50 | 63.80 |
| STEEL AUTHORITY OF INDIA LTD | 108.82 | 2.60 | 110.90 | 105.90 |
| TATA STEEL LTD | 130.28 | 2.20 | 133.20 | 126.20 |
| VEDANTA LTD | 454.05 | 5.10 | 463.70 | 443.30 |
| NIFTY METAL | 8521.70 | 3.10 | 8640.90 | 8352.60 |
| NIFTY 50 | 23203.20 | (-)1.00 | 23390.30 | 23006.80 |
| BSE SENSEX | 76619.33 | (-)1.00 | 77456.50 | 75844.70 |
End
Reported by Akshita Kumar
Edited by Akul Nishant Akhoury
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