Outlook For Indian Metal Scrips In Light Of US Fresh Sanctions On Turkey And China

Subscribe to GoodReturns
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

    Global risk has overshadowed the metals across the globe and off late has been impacted by the trade sanctions on Turkey. And after subsiding for some time, Turkish lira again plunged in light of the fresh sanctions on Turkey as the previous week ended. Also, the US-China trade threat and sanctions on Russia are unknown of any decisive fate.

     Metal Stocks Outlook: Amid US Sanctions On Turkey And China

    So, by and large external factors which are affecting the industry hugely are not seeing conditions to calm down anytime soon.

    Two factors to become playful side by side

    Producers of metal to feel the heat in light of decline in metal prices
    While prices of metals will be hurted or see a downward trajectory, to the same extent companies will see their earnings to fall and hence investors will lower down their expectations from the metal scrip. The affect will gradually be seen in the valuation of these metal scrips. And as the global tensions will affect the global economy at large, pressure will remain longer.

    Rupee depreciation will also augur well for producers but at the sometime import of raw material will become expensive

    So, when at one place producers will benefit from the free-falling rupee currency, the imports in respect of the production of these metals will be borne heavily due to expensive imports of raw material such as coal etc.

    Some of the metal companies that are seeing the heat currently include Hindustan Zinc Ltd as prices of zinc has fallen by huge amounts during the ongoing month itself and the repercussions are to fall on Vedanta who is still recovering from several of the latest headwinds.

    Other metals that have seen prices crashing down during the month include copper and aluminium as per the Bloomberg report.

    however as dollar has slipped, metal prices in the world markets have zoomed.

    For investors, it is advised to remain cautious on the sector and be vigilant to the global landscape in terms of the economic data to be released by the Chinese government and the US-China talks currently underway in the Washington as it shall be indicative of the rout being of a short-term or of a deep-rooted nature.

    Goodreturns.in

    Read more about: hindustan zinc vedanta
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    Get Latest News alerts from Goodreturns

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more