Live Markets »News & Advice»Market News»Market News Details
Market News Details
Back

BSE Metal index hits 6-year high; Tata Steel, Jindal Steel hit 52-wk highs

SI Reporter/Mumbai 13 Oct 17 | 10:43 AM
 Jindal Steel & Power Ltd
tradenow

BSE   24 Oct 17 | 01:01 PM

160.85  3.1 (1.97%)

NSE   24 Oct 17 | 12:54 PM

161.80  4 (2.53%)

Shares of metal companies were in focus with the S&P BSE Metal index hitting six-year high on expectations of strong earnings growth in July-September quarter (Q2FY18).

Tata Steel, Jindal Steel & Power (JSPL) and National Aluminium hit their respective fresh 52-week highs, while Hindalco touched a new high on the BSE in intra-day trade on Friday.

Related Stories

    No Related Stories Found
Widgets Magazine

At 10:11 AM; the S&P BSE Metal index was up 0.88% at 14,379, as compared to 0.55% rise in the benchmark S&P BSE Sensex. The metal index hit an intra-day high of 14,414, its highest level since July 28, 2011.

Thus far in the current calendar year 2017, the S&P BSE Metal index has rallied 42% against 21.5% rise in the benchmark index.

Strong commodity prices coupled with decent volume growth would continue to earnings of metal companies.

“In the metal space, on a sequential basis, we expect the EBITDA/tonne of steel players to increase while non-ferrous players are also likely to report healthy revenues and profitability. On account of an increase in domestic steel prices and moderation in the prices of coking coal (key raw material), we expect steel players to report healthy EBITDA/tonne sequentially," ICICI Securities said in a Q2FY18 results preview.

Analyst at Edelweiss Securities expects year-on-year (YoY) earnings growth momentum to sustain in Q2FY18 for most players in the metal & mining. This spurt will be largely on account of price hikes & lower coking coal cost for ferrous players and higher LME prices for non– ferrous companies.

Despite Q2 being a seasonally weak quarter, we expect Vedanta, Tata Steel and Hindustan Zinc to gain from operating leverage benefits. Going ahead, while we expect ferrous players to clock earnings growth on better spreads, volumes of nonferrous companies are likely to surge amidst steady LME prices. We expect Coal India to benefit from higher volumes and eauction premium, NMDC is likely to benefit from price hike effected in September, the brokerage firm said in a note.

  Price on BSE in Rs % chg Company 30/12/2016 13/09/2017 LTP 1-mth YTD Jindal Steel 69.1 141.85 161.5 13.9 133.7 Tata Steel 391.1 679.7 705.5 3.8 80.4 Hindalco Inds. 155.1 248.05 265.0 6.8 70.9 JSW Steel 162.5 263.85 257.4 -2.4 58.4 Vedanta 216.3 326.9 323.0 -1.2 49.3 Natl. Aluminium 65.0 82.25 86.6 5.2 33.3 Hind.Zinc 255.5 306.9 319.0 3.9 24.9 S A I L 49.2 61.85 57.1 -7.7 16.1 NMDC 123.5 133.05 120.5 -9.4 -2.4 Coal India 300.0 256.1 285.2 11.3 -5.0             LTP : Last traded price at 10:18 AM

Widgets Magazine

Sensex

Company Price Gain (%)
St Bk of India253.253.05
NTPC181.802.92
O N G C176.502.86
Hind. Unilever1,267.501.51
Tata Steel721.001.36

Poll

Given the current crisis at Infosys, what would your investment strategy in the company's stock be?



Online Portfolio

You can create Online Portfolio here using the below button.

Widgets Magazine