Nifty Metals Rocks D-Street, Stays Top Gainer

Today, Shares of the Metal Companies were trading in a high

range in an otherwise range-bound market as the Nifty Metal
Index hitting new 52-week high on the National Stock
Exchange (NSE) on Monday 10th October 2016.
At 09:50 am, Nifty Metal Index was up 1.52% at 2,707.15,
against 0.28% rise in the Nifty50 Index. Nifty Metal became
the largest gainer among Sectoral Indices. The Metal Index
traded at a new 52-week high of 2,712.25 in intra-day,
surpassing its previous high of 2685.15 that it had touched on September 8, 2016.
NALCO share price went up 7% at Rs 52.50, Vedanta share price went up by 3% to
201.70, Tata Steel share price hiked 3% at Rs 418 and NMDC share price increased 1.6%
at Rs 119.70 and have hit their respective 52-week highs on the NSE in intra-day trade. All
the four of them are the top 500 pick for the quarter identified by Dynamic Levels.
Hindalco Industries and Steel Authority of India (SAIL) were up 2% and 3%. These two
stocks are included in the top 500 pick for the quarter as well.
Tata Steel share price has surged 7.5% in past two trading sessions after the company
declared that its sales have rallied by 12% year on year (y-o-y) to 2.62 million tonnes
(MT) in the quarter ended September 30, 2016 (Q2FY17). The company had recorded
sales of 2.33 MT in the corresponding quarter of the financial year 2015-16.
According to certain reports, the second extension of the Central Government-set
Minimum Import Price (MIP) in steel is likely to place the ground for more price increases
by domestic producers.
On 4th October, via a notification, the Ministry of Commerce had declared MIP
continuation on 66 steel products till December 4. It was first urged in February for six
months and then extended till October 4, to control the flow of cheaper imports.

Since April, steel prices have gone up by around Rs 5,000 a tonne. If steel demand
increases in the peak consumption season and the cost of production hikes due to increased
raw material prices, domestic producers will surely raise prices in the coming months.
With MIP and related measures, import of finished steel decreased 35 per cent in AprilAugust to three million tons as compared to the corresponding period of last year.
Nifty Metal has been gaining consistently since past one year, hence remaining the top
gainer throughout and looking promising even against the Benchmark Index Nifty50.

Disclaimer
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research team. Users are advised to use the data for the purpose of information and rely on their own judgment while making
investment decision.
Dynamic Equities Pvt. Ltd - SEBI Investment Advisory Reg. No.: INA300002022

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Answers to the Best of our knowledge and belief of Dynamic/ its Associates/ Research Analyst: DYNAMIC/its Associates/ Research
Analyst/ his Relative:

Do not have any financial interest / any actual/beneficial ownership in the subject company.
Do not have any other material conflict of interest at the time of publication of the research report
Have not received any compensation from the subject company in the past twelve months
Have not managed or co-managed public offering of securities for the subject company.
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benefits from the subject company, nor engaged in market making activity for the subject company
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Article Written by
Tanaya Nath