During one month, the giant metal shares have fallen from 10 per cent to 32 per cent. In order to reduce inflation last month, where the government had increased the export duty.
Metal Sector Investment Strategy: Metal stocks have seen a huge decline since the last 1 month. During one month, the giant metal shares have fallen from 10 per cent to 32 per cent. In order to reduce inflation last month, while the government increased the export duty, the import duty was reduced on the raw material used in the steel industry. Due to this, there was a possibility of a fall in the metal prices and there was a sell-off in the shares. Brokerage house ICICI Securities has also predicted pressure on metal stocks in the near term and has advised to reduce the target on most of the stocks.
How much fall in which stock in 1 month
In the last 1 month, there was a 23 percent decline in Tata Steel, while Jindal Steel saw 32 percent weakness. Hindalco Industries fell 23 per cent and JSW Steel 14 per cent during this period. NALCO’s shares fell 23 per cent in 1 month, SAIL declined 20 per cent. Weakness almost came.
28% fall in Titan Company in 3 months, Rakesh Jhunjhunwala drowned 3550 crores, do you have these shares?
Metal stocks under pressure
Brokerage house ICICI Securities says that after the increase in export duty, the pressure on metal stocks has increased. With huge inflows in liquidity and rate changes (fastest single rate hike in 28 years by FOMC) it is time to re-examine their valuations. The brokerage house has given REDUCE rating on Tata Steel, SAIL, JSWS, NMDC, JSPL. Whereas HOLD is recommended in Jindal Stainless and Shyam Metalics. At the same time, investment is advised only in APL Apollo.
Global demand also weak
The brokerage house says that the continuous downtrend in steel EBITDA will continue. There is no hope of an improvement in demand in China in the mid-term. At the same time, global demand is also weak. However, if steel export duty is removed in future, the outlook for the domestic metal sector will be better again.
(Disclaimer: Metal stocks advice is given by brokerage house. These are not the personal views of Financial Express. Markets are risky, so take expert opinion before investing.)
