Troubling times anticipate Metals and OMCs

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Metals and OMCs: In response to the introduction of a 15% export duty on most steel products and the hike in iron ore and pellet duties to 45-50%, metal stocks fell sharply on Monday.

A number of stocks, including Tata Steel, JSW Steel, Jindal Steel, SAIL, and NMDC, broke the 20% barrier in intraday trading.

Recent policy decisions have turned analysts into pessimists, particularly for metal companies as the move is likely to undermine their operational performance.

In the opinion of research analysts, a 15% increase in export duty will lead to a decline in realizing export revenue. Approximately 10-25 percent of steel companies’ sales exported, Chauhan says, adding that margins will continue to squeeze. Evaluation will reveal if there is any upside left after left.

As a result of the hike in export duties, some brokerages have already downgraded the ratings of leading steel stocks. Metals and OMCs

Metals and OMCs  

Logistics firm Delhivery will make its market debut on Tuesday, while Aether Industries, an IPO worth Rs 808 crores that will be available for subscription, will kick off the primary market.

In addition to these companies, investors will be paying attention to Adani Ports, Balkrishna Industries, Balrampur Chini, Grasim, IPCA Laboratories, and Metropolis Health ahead of their third-quarter results. Aside from that, market trends will decide by stock-specific actions as well as global factors.

HPC’s weekly chart, however, shows that it’s currently in a bearish trend. As Indian Oil Corporation’s stock price remains above the 200-day moving average, it is well-positioned.

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