Metals Stocks Gained on Rising Commodity Prices

India's small and mid-cap metal and mining stocks are making a
comeback. In past two months. Sarda Energy share price rallied
42%, Moil share price zoomed 35%, GMDC share price surged
34%, Prakash Industries share price jumped 22% and NALCO
share price moved up by 21%.

Indian Metal outlook

Largecap metal stocks picked up steam since the demand for metals in China stabilized and
the scope of infrastructure development in India has increased. Hindalco, Vedanta, Tata Steel
and Hindustan Zinc nearly doubled their market cap in the past nine months. Globally,
industrial metals have rallied almost 30% in 2016 and there is no stopping this overwhelming
rally for now.

Rising demand for Metals in Global market

On Tuesday, the Bloomberg Industrial Metals sub-index posted its biggest five-day increase
since 2011, as zinc touched a nine-year high. Prices rallied after China's top economic
commission permitted a $36-billion plan on new rail links around Beijing, enhancing demand
for industrial raw materials.
Market experts says that Small and mid-cap metal stocks were substantially beaten down for
the past couple of years and they are just coming to terms with the recent rally in base metal.
They will wait to see substantial pick up in global demand and may continue its rally further.
Metals and Mining is a fairly unorganized sector. The cash dealings make the chances of
defaulting high in this space. However, if the Demonetization effect gets the sector into the
digital payment process, it might end up gaining even more. Listed companies who are
willing to work in an organized market may be highly benefitted as the chance of default will
be significantly reduced.

Commodities and Stocks:

Commodity Prices:

Copper
Nickel
Lead
Zinc

Metal Stock Prices:

2/29/2016

11/29/2016

% rise

4645
8400
1729.5
1743

5739.5
11150
2353
2735

23.56%
32.74%
36.05%
56.91%

Tata Steel
JSW Steel
Vedanta
Hindalco
NMDC
SAIL
Jindal Steel
Nalco

2/29/2016 11/29/2016 % rise

64.17%
249.1
408.95
50.69%
1,126.45
1,697.45
223.72%
70.6
228.55
155.12%
68.75
175.4
30.79%
92.7
121.25
45.70%
34.9
50.85
32.11%
53.4
70.55
75.07%
32.9
57.6

Commodity prices in China have been increasing gradually and so has the prices of the Metal
stocks. Since February 29th 2016, prices of Copper, Nickel, Lead and Zinc have surged
anywhere from 20% to 30%. Simultaneously, Tata Steel share price gained 64.17% and JSW
Steel share price surged 50.69%. Tata Steel uses Zinc and alloys as raw material apart from
Iron ore, coke and coal.
However, Vedanta share price gained the most 223.72% during 29th February to 29th
November this year. Hindalco share price followed, gaining 155.12% during the span.
Vedanta and Hindalco have Copper and Alumina as their primary raw material.
All the four stocks the stocks are top 500 recommendations by Dynamic Levels.
NALCO share price surged over 75% while Zinc led the 46% rise in SAIL share price.
Although Caustic soda is the major component of NALCO products, it also uses Aluminium
Fluoride. NALCO is the Multibagger recommendation by Dynamic Levels.
The rally according to the analysts is not going to halt anytime soon. So, if you have an eye
on the sector, this is the best time to enter into the Metal market.

Disclaimer
The investment advice or guidance provided by way of recommendations, reports or other ways are solely the personal views of the 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

Disclosure
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Exchanges and Depositories have conducted the routine inspection and based on their observations have issued advise letters or levied minor
penalty on for certain operational deviations.
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.
Have not received any compensation for brokerage services or any products / services or any compensation or other benefits from the
subject company, nor engaged in market making activity for the subject company
Have not served as an officer, director or employee of the subject company

Article Written by
Tanaya Nath