Money

ICICI Securities recommends these mining and metal stocks as top choices.

Published

2 years ago

January 3, 2023

rsuser

mining and metal stocks

The trading company ICICI Securities observes flat price growth for the second week in a row in the metals and mining sector as HRC prices in traders’ market increased by an average of Rs500/te during the week ended December 21, 2012, likely due to the prospect of a price increase by significant steel players in January-23. On the shares of Jindal Steel, Jindal Stainless Steel, SMEL, and APL Apollo, the research analysts of the broking business have assigned buy call ratings.

“In anticipation of a potential price increase by key players to the extent of Rs750-1,000/te, HRC price in traders’ market increased by an average of Rs500/te (same level as compared to last week) to Rs55,100/te. Additionally, based on our channel checks, it appears that the market has adjusted to the major players’ 20th December price increase of Rs500/te on average for coated steel. Currently, South Korean imports are slightly more expensive than domestic HRC prices, but our channel checks show that imports are not being incrementally booked. Longs market prices are still rising. Due to rising prices for iron ore and pellets, secondary rebar prices increased by Rs1,500/te further “ICICI Securities’ research analysts made this statement.

“Prior to the new year, we would closely monitor any policy statement from Chinese authorities because it would be important for the outlook of commodities generally. Due to their extensive product portfolios, JSPL (TP: Rs605) and Shyam Metalics (TP: Rs425) are our top picks in the ferrous industry.

On the BSE, Jindal Steel shares ended trading on Friday at 580.65, down 1.52% from the previous close of 589.60. The stock had a 52-week high of 596.65 and a 52-week low of 304.20 on the day in question.

The BSE closing price for Jindal Stainless Steel on Friday was $239.15 per share, up 6.03% from the previous close of $228.60. The stock’s 52-week high was 242.50 and its 52-week low was 95.05.

The BSE closing price of APL Apollo on Friday was 1,093, up 2.10% from the previous close of 11,164.5. The stock’s 52-week high was $193.85, and its 52-week low was $771.