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METALS & MINING
Current view
q We expect the Budget to have a neutral impact on the prospects of Metals &
Mining Industry and companies operating within it.
q From a longer-term perspective, we believe that greater infrastructure spending
on road, power, railways, ports and airports would be undertaken by the government
and that would be positive for the sector.
q Any amnesty scheme for black money abroad if announced in the budget
would be very positive for the metals sector at it would boost real estate and
consumer durables demand as well as infrastructure spending.
q Our preference remains for mining companies in iron ore, zinc, coking and thermal
coal space. Also, steel and metal companies which have captive ownership
of above mentioned resources are likely to perform well. We have cautious outlook
on steel and metal companies which have limited captive ownership of resources.
q Revival of government spending in infrastructure is needed to boost demand for
long steel. That would ease liquidity tightness and pressure on interest rates
which in turn would boost demand for interest sensitive real estate (long steel
products) and consumer durable sector (flat steel products).
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
METALS & MINING
Current view
q We expect the Budget to have a neutral impact on the prospects of Metals &
Mining Industry and companies operating within it.
q From a longer-term perspective, we believe that greater infrastructure spending
on road, power, railways, ports and airports would be undertaken by the government
and that would be positive for the sector.
q Any amnesty scheme for black money abroad if announced in the budget
would be very positive for the metals sector at it would boost real estate and
consumer durables demand as well as infrastructure spending.
q Our preference remains for mining companies in iron ore, zinc, coking and thermal
coal space. Also, steel and metal companies which have captive ownership
of above mentioned resources are likely to perform well. We have cautious outlook
on steel and metal companies which have limited captive ownership of resources.
q Revival of government spending in infrastructure is needed to boost demand for
long steel. That would ease liquidity tightness and pressure on interest rates
which in turn would boost demand for interest sensitive real estate (long steel
products) and consumer durable sector (flat steel products).
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