Issuu on Google+

Metal Stocks Trade Higher, Extend gain, Nalco soars 7% Metal stocks were trading higher in the afternoon trade on Friday on firm global cues. Amidst optimism that demand will accelerate, sentiments improved after a report displayed orders for business equipment hiked in the US, strengthening the outlook for the metal sector. Among the ten components in the BSE Metal index, Nalco was trading close to 7 per cent up at Rs.56.55, followed by JSW Steel - up 2.49 per cent, Tata Steel - up 2.02 per cent and NMDC - 1.59 per cent. Other metal stocks such as SAIL, Coal India and Jindal Steel were up 1.02 per cent, 1.15 per cent and 1.54 per cent respectively. The BSE Metal index was trading 1.08 per cent higher at 10,480 in afternoon trade. However, those of Vedanta, Hindustan Zinc and Hindalco were seen down 0.11 per cent, 0.29 per cent and 0.29 per cent, respectively. Equity benchmark BSE Sensex was trading 1.14 per cent or 294.43 points, higher at 26,154. According to a Press Trust of India (PTI) report, increasing demand from the consumer industries on the domestic spot market are backing metal prices. On a year-to-date basis, Vedanta share price has surged the most at 142 per cent till 24th November. They were followed by Hindalco share Price - up 112.67 per cent, Hindustan Zinc share price - up 83.78 per cent, JSW Steel share price - up 57.18 per cent and Tata Steel share price - up 55 per cent. The BSE Metal index has surged 39.25 per cent to 10,368 as of 28th November from 7,445 on 1st January.


The China Effect: Commodity prices have witnessed a reversal in trend especially all the industrial commodities which weren’t doing well for the last few years after the Chinese economy began cooling down and several metal producers began cutting production of closing mines. According to some analysts, latest Chinese annual growth, services activity and manufacturing activity have shown signs of stabilisation, and estimates of increase in global demand for the metal especially in the US after freshly elected President Donald Trump stated that he will boost the infrastructure spending that will help cushion sharp negative movement in the price of base metals. Company

Latest

1-Week Before

Gain(%)

NALCO VEDANTA HINDUSTAN ZINC HINDALCO NMDC TATA STEEL

56.3 227.1 275.25 181.85 123.95 411.1

50.2 204.2 249.55 165.5 113.95 385.1

12.15 11.21 10.3 9.88 8.78 6.75

LMEX, a gauge of 6 metals traded on the LME - London Metal Exchange has rallied 6.8 per cent in the past 4 trading sessions and closed at 2,826 on Thursday, its highest level since the month of May 2015.


Disclaimer The investment advice or guidance provided by way of recommendations, reports or other ways are solely the personal views of the research team. Users are advised to use the data for the purpose of information and rely on their own judgment while making investment decision. Dynamic Equities Pvt. Ltd - SEBI Investment Advisory Reg. No.: INA300002022

Disclosure Dynamic Equities Pvt. Ltd. is a member of NSE, BSE, MCX SX and a DP with NSDL & CDSL. It is also engaged in Investment Advisory Services and Portfolio Management Services. Dynamic Commodities Pvt. Ltd., associate company, is a member of MCX & NCDEX. We declare that our activities were neither suspended nor we have defaulted with any stock exchange authority with whom we are registered. SEBI, Exchanges and Depositories have conducted the routine inspection and based on their observations have issued advise letters or levied minor penalty on for certain operational deviations. Answers to the Best of our knowledge and belief of Dynamic/ its Associates/ Research Analyst: DYNAMIC/its Associates/ Research Analyst/ his Relative: Do not have any financial interest / any actual/beneficial ownership in the subject company. Do not have any other material conflict of interest at the time of publication of the research report Have not received any compensation from the subject company in the past twelve months Have not managed or co-managed public offering of securities for the subject company. Have not received any compensation for brokerage services or any products / services or any compensation or other benefits from the subject company, nor engaged in market making activity for the subject company Have not served as an officer, director or employee of the subject company

Article Written by Salman Hashmi


Metal stocks trade higher docx