Metal Stocks Outlook for the week – 29.05.2017 to 02.06.2017
Metal Stocks Outlook for the week – 29.05.2017 to 02.06.2017
( www.rupeedesk.in )
Stocks of metal and mining companies are seen positive next week as they track movement of the broader market, sentiment for which remains upbeat. Nifty 50 and Sensex hit their lifetime highs this week, gaining close to 2% each during the week. This is the third consecutive week for which share indices have ended higher. If the positive run in the market continues, the metal space is likely to outperform benchmark indices given its hi-beta nature, and the recent correction in these shares. Analysts are particularly positive on companies in the non-ferrous space, as they reap the benefit of robust year-on-year production growth in April. Hindustan Zinc, Hindalco Industries and Vedanta have all seen strong production volumes in April. Overall, we expect non-ferrous companies to sustain earnings momentum on higher base metal prices and operating leverage benefits. In the earnings space, Hindalco Industries, which is scheduled to detail its Jan-Mar numbers on Tuesday, will be watched. Aditya Birla group owned-Hindalco Industries is seen posting a 53% sequential rise in its net profit for Jan-Mar, led by higher prices of copper and aluminium even as its volumes remain stable sequentially. Market participants sees the Mumbai-based company's net profit at 4.91 bln rupees, while net sales are seen at 103.50 bln rupees, up 4.4% on quarter and 19.4% on year. Other companies in the metal space announcing their earnings include Bhushan Steel and Sarda Energy and Minerals.
Source : Cogencis Information Services Ltd.
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Metal Stocks Outlook for the week – 29.05.2017 to 02.06.2017
( www.rupeedesk.in )
Stocks of metal and mining companies are seen positive next week as they track movement of the broader market, sentiment for which remains upbeat. Nifty 50 and Sensex hit their lifetime highs this week, gaining close to 2% each during the week. This is the third consecutive week for which share indices have ended higher. If the positive run in the market continues, the metal space is likely to outperform benchmark indices given its hi-beta nature, and the recent correction in these shares. Analysts are particularly positive on companies in the non-ferrous space, as they reap the benefit of robust year-on-year production growth in April. Hindustan Zinc, Hindalco Industries and Vedanta have all seen strong production volumes in April. Overall, we expect non-ferrous companies to sustain earnings momentum on higher base metal prices and operating leverage benefits. In the earnings space, Hindalco Industries, which is scheduled to detail its Jan-Mar numbers on Tuesday, will be watched. Aditya Birla group owned-Hindalco Industries is seen posting a 53% sequential rise in its net profit for Jan-Mar, led by higher prices of copper and aluminium even as its volumes remain stable sequentially. Market participants sees the Mumbai-based company's net profit at 4.91 bln rupees, while net sales are seen at 103.50 bln rupees, up 4.4% on quarter and 19.4% on year. Other companies in the metal space announcing their earnings include Bhushan Steel and Sarda Energy and Minerals.
Source : Cogencis Information Services Ltd.