More Stories

Informist, Friday, May 16, 2025

MUMBAI – Shares of metal companies are likely to rise further next week on the back of optimism around better earnings growth for the March quarter and on easing of selling pressure from foreign investors. "I don't see a major correction in metal (stocks) again and commodity prices are also going to increase. I think it's a good time to start buying them," an analyst tracking the sector at a domestic broking firm said. "Valuations are not that great, not that cheap as well," the analyst added. 

The selling pressure among foreign portfolio investors towards metal and mining stocks eased significantly in the second half of April from the first half. According to data on the National Securities Depository Ltd., FPIs net sold metal and mining stocks worth INR 5.74 billion during Apr. 15-30, compared with net selling INR 28.29 billion during Apr 1-15. 

Investors will continue to monitor the earnings season and three metal companies--Hindalco Industries, JSW Steel, and National Aluminium Co.--are scheduled to release their quarterly results next week and are likely to report strong growth in their bottom line compared with the year-ago period. Hindalco and JSW Steel are part of Nifty 50 while National Aluminium Co. is a part of Nifty 200. 

Hindalco will release its earnings Tuesday. Its consolidated net profit is seen rising nearly 44% on year to INR 45.58 billion and revenue is expected to grow over 10% to INR 617.16 billion, as per the average of estimates from 11 broking houses. This would mean a 22% sequential rise in its bottom line and almost 6% growth in the top line. Its subsidiary Novelis, which contributes to around 60% of the company's consolidated sales, had Monday posted a 77% on-year growth in net income in the March quarter and 13% rise in its net revenue. Despite strong growth in the subsidiary's key financials, shares of Hindalco had fallen on Tuesday as the arm did not provide any guidance for its earnings before interest, tax, depreciation, and amortisation, and short-term margins on account of tariff implications. 

National Aluminium's earnings is due Wednesday. Its net profit is likely to rise just a little over 40% from the year-ago period to INR 14.26 billion and revenue is seen rising around 32% to INR 47.15 billion, as per the average of estimates from seven brokerage houses. 

JSW Steel is scheduled to release its result on May 23. The company's consolidated net profit is expected to grow 38% on year to INR 17.98 billion, but revenue is likely to fall 3% to INR 447.26 billion, the average of estimates from 16 broking firms said. However, sequential growth paints a better picture than the on-year figures, with the bottom line seen rising 151% and the top line likely to increase over 8%. 

TOP HEADLINES
* CCI approves acquisition of Thriveni Earthmovers and Infra by Lloyds Metals
* Analyst Concall: Tata Steel aims INR-110-bln savings, INR-150-bln capex FY26
* Earnings Review: Tata Steel sales, PAT beat Street view, revenue dn 4.2% YoY
* Hindalco arm Novelis' Jan-Mar net income up 77%, adjusted EBITDA falls 8%
* Usha Martin Jan-Mar consol PAT falls 5% YoY to INR 1.01 billion
* Fitch affirms Tata Steel's issuer default rating at 'BBB-', outlook negative

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

US$1 = INR 85.51

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Anjana Therese Antony

Edited by Subhojit Sarkar

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.