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Informist, Friday, Jan. 24, 2024

MUMBAI – Shares of metal companies are expected to be range-bound next week amid earnings of major companies. Analysts said earnings of Tata Steel, Hindustan Zinc, and Jindal Steel & Power will be the highlight, which will help the market assess the impact of dumping by China.

Strong earnings can boost market sentiment but disappointing results can weigh on stock prices of companies in this sector, said Riyank Arora, a technical analyst at Mehta Equities. The government's policies on export tariffs, infrastructure and commodity prices are also a major trigger for the steel sector. 

Tata Steel is scheduled to report its financial results for the December quarter on Jan. 27. An average of estimates from 10 brokerages indicated that the company is expected to report a consolidated loss of INR 4.13 billion, as against a consolidated profit of INR 5.1 billion in the year-ago quarter. Of the 10 brokerages, Motilal Oswal Financial Services, JM Financial Institutional Securities, and Axis Securities expect the company to post profits. Its December quarter consolidated revenue is estimated to be INR 526.70 billion, down 4.8% on year, according to the estimates.

Hindustan Zinc will report its December quarter earnings on Jan. 28. The company's net profit is expected to grow by 22% on year to INR 24.83 billion, an average of estimates from five brokerages showed. The company's top line is seen growing 16% on year to INR 84.74 billion, the estimates showed. Jindal Steel and Power is scheduled to post its financial results for the reporting quarter on Jan. 30. Its consolidated bottom line is seen falling 53% on year to INR 9.11 billion and the top line is seen declining by 1.7% on year to INR 115.08 billion, an average of estimates from eight brokerages showed.

The Nifty Metal index fell 1% this week, compared with a rise of 3.1% last week. Shares of Hindalco Industries fell 1.6% and Vedanta fell 2.7% this week. On other hand, JSW Steel rose 2.6% and Hindustan Zinc rose 2.1% this week. 

TOP HEADLINES
* Earnings Outlook: Tata Steel may land up in red despite record sales Oct-Dec
* Earnings Outlook:JSW Steel PAT seen down for 4th qtr on falling steel prices
* MSTC concludes Ferro Scrap Nigam sale to Japanese co, transfers mgmt control
* Analyst Concall: APL Apollo Tubes sees FY25 sales at 3.1-3.2 mln tn
* IPO Alert: Scoda Tubes gets SEBI nod to raise INR 2.75 bln via fresh issue
* Earnings Review:APL Apollo posts highest profit growth in 5 qtrs, beats view
* Fitch upgrades Vedanta Resources foreign currency rating to 'B+' from 'B-'
* Earnings Review:APL Apollo posts highest profit growth in 5 qtrs, beats views
* Earnings Outlook: Strong volume growth to drive APL Apollo Oct-Dec earnings
* HC rules in favour of Vedanta in transfer pricing case, junks tax dept plea

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:

End

Reported by Akshita Kumar
Edited by Akul Nishant Akhoury

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