Business Daily from THE HINDU group of publications
Tuesday, Oct 16, 2007
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Business Daily from THE HINDU group of publications Tuesday, Oct 16, 2007 ePaper |
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Stock Markets Markets - Stocks
Jayanta Mallick Kolkata, Oct. 15 Several factors including basket buying by the FIIs today placed metal stocks on fire. The BSE Metal index shot up over 9 per cent. According to analysts, the current P/E of the index is roughly half the Sensex. “Lot of catching up took place as the investment strategists applied a bottoms up approach”, said an analyst with a foreign brokerage. Among the other big gainers were Sesa Goa (13.16 per cent), Sterlite (14.37 per cent), SAIL (15.4 per cent) and Tata Steel (7.46 per cent). According to Mr Ajay Jaiswal of Angel Broking, demand from consumer industries of metals such as automobiles, battery, infrastructure and consumer good have been rising rapidly. If August IIP figure is anything to go by, 17.1 per cent growth in mining was not only phenomenal but also indicative of consumption growth of metals in the domestic market. “The metal-making capacities are also likely to remain stagnant in the near future as delays in the new projects on green objection is a reality,” he added. 
Copper prices rose in Asia on speculation that demand would remain strong in China, the world’s largest user, as imports of the metal used in wires and pipes surged. Similarly, Shanghai zinc for December delivery gained 2 per cent and LME zinc for delivery in three months rose 0.9 per cent on slower than expected growth in Chinese mine production. Shanghai December aluminium ended the day flat, but LME aluminium was 0.2 per cent higher in early trades. Stockpiles of lead monitored by the LME fell to a low of 20,000 tonne at the end of September, representing a 17-year low and 0.1 weeks of consumption. LME lead inventories stood at 22,525 tonnes on October 12. Lead for delivery in three months on the LME advanced 0.8 per cent to $3,850 a tonne at 3:31 p.m. Shanghai time. The metal touched a record $3,890.15 a tonne on October 10, as the physical market remained tight. In absence of substitutes for lead in the battery market, cut in demand in response to higher prices was not possible, analysts felt. More Stories on : Stock Markets | Stocks | Metals
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