Sun, May 19, 2024

Nifty Metal Index : Metal stocks rise despite worries about rising Chinese imports

The Nifty Metal index up today after the US imposed tariffs on Chinese imports of Battery, Semiconductors and Chips, Battery Vehicles. India will replicate this on china is more expected from economists side, 15.1% imports from China Goods so far in Steel and Aluminium. So expected tariffs from India on China build up the Indian Steel and Aluminium stocks soaring up.

Nifty Metal Index Market price is moving in Ascending channel and market has rebounded from the higher low area of the channel

Nifty Metal Index Market price is moving in Ascending channel and market has rebounded from the higher low area of the channel

On May 16, metal stocks across the board witnessed upward momentum for the fifth consecutive trading session, despite concerns looming over India’s susceptibility to becoming a destination for Chinese exports, particularly in steel and aluminum. This unease stems from recent actions by the U.S., which aims to reduce reliance on Chinese imports by imposing higher tariffs.

President Joe Biden’s announcement on May 14 included significant tariff hikes on a range of Chinese products, spanning steel, aluminum, electric vehicles, computer chips, solar panels, and medical items. The White House stated that these measures affect Chinese goods valued at $18 billion.

President Joe Biden's announcement

In response, major metal stocks such as Tata Steel, Hindalco, Vedanta, and NMDC saw gains of nearly one percent, contributing to the positive trend. The only exception was JSW Steel, which experienced a marginal dip of half a percent from the previous closing price. Concurrently, the Nifty Metal index opened 0.5 percent higher at 9,418.

GTRI, a private trade think tank, highlighted concerns regarding the proposed tariff increases, suggesting that they could exceed the U.S.’s bound duty commitments at the World Trade Organization (WTO), potentially violating WTO provisions. This sentiment was echoed by reports suggesting that India might be at risk of becoming a dumping ground for Chinese goods, particularly following the U.S.’s decision to raise tariffs on crucial imports like electric vehicles and chips.

In response to these developments, top government sources reassured that India’s existing “institutional mechanisms” are equipped to address any potential influx of goods from China. However, data from the Commerce Ministry for FY24 revealed that China retained its position as India’s primary import source, accounting for 15.1 percent of total inbound shipments, followed by Russia.

US imposed tariffs on Chinese imports

Oberoi realty: Oberoi Realty Hits Record High on Strong Q4 Results, Fundraising Plans

The Oberoi Realty reported Q4 Robust result as Net profit Rs.788 cr and 64% up from the previous quarter.Revenue up by 37% as Rs.1315cr from Rs.1082.85cr in the previous quarter.

The company gets approval from Board for fund raising plan of Rs.4000 cr, partial from NCDs and partial from Private Equity Firms like QIPS.

OBEROI REALTY Market price is moving in Ascending channel and market has rebounded from the higher low area of the channel

OBEROI REALTY Market price is moving in Ascending channel and market has rebounded from the higher low area of the channel

On May 15, shares of Oberoi Realty experienced a notable surge of over 4 percent in trading activity, reaching a new milestone with each share valued at Rs 1629.05, marking an all-time high. This surge came on the heels of the company’s impressive financial performance for the March quarter.

The Mumbai-based real estate developer reported a remarkable 64 percent year-on-year increase in net profit for Q4 FY24, reaching an unprecedented high of Rs 788 crore. This substantial growth was driven by robust demand and strong operational performance.

Revenue also witnessed significant growth, rising by nearly 37 percent year-on-year to Rs 1,315 crore for the quarter under review, compared to Rs 1,082.85 crore recorded in the corresponding period of the previous fiscal year.

Mumbai based real estate

Vikas Oberoi, CMD of Oberoi Realty, attributed the continued strong performance to significant sales traction in the residential sector, propelled by growing end-user demand and an increasing desire for homeownership.

Furthermore, Oberoi Realty entered into an agreement for the development and redevelopment of approximately 12,790 sq.mtr. land parcel in Worli, Mumbai. Analysts at Nuvama Institutional Equities estimated the company to generate pre-sales of Rs 6,400 crore from this project, underscoring its potential for substantial revenue generation.

In response to these developments, Nuvama raised its price target for Oberoi Realty stock by 6 percent to Rs 1,596, while maintaining its ‘hold’ rating. The brokerage identified traction in pre-sales and project launches as potential catalysts for the company’s stock.

Additionally, Oberoi Realty’s board approved a plan to raise funds of up to Rs 4,000 crore through the issuance of non-convertible debentures (NCDs) and a qualified institutional placement (QIP) of equity shares. The fundraising initiative involves issuing NCDs worth up to Rs 2,000 crore via private placement, with the remainder to be raised through the QIP route.

sales traction in the residential sector

TITAGARH WAGON: Titagarh Rail surges 9% on strong Q4 performance excitement

The Titagarh Rail systems reported 64% net profit as Rs.79 cr in the Q4 FY24 and Net revenue up by 8% as Rs.1052.4 cr. EBITA Margin up by 11.4% from 9.8% in the last quarter. Robust positive result makes 9% up today after the result.

TITAGARH RAIL SYSTEMS Market price is moving in Ascending channel and market has reached higher high area of the channel

TITAGARH RAIL SYSTEMS Market price is moving in Ascending channel and market has reached higher high area of the channel

Shares of Titagarh Rail Systems experienced a significant surge of over 9 percent in morning trading on May 16, driven by investor enthusiasm over the company’s impressive financial performance during the March quarter of FY24.

The rail wagon manufacturer reported a notable 64 percent year-on-year increase in net profit for the quarter, reaching Rs 79 crore in Q4 FY24, up from Rs 48.2 crore recorded in the corresponding period of the previous fiscal year. Additionally, revenue witnessed an 8 percent growth on a yearly basis, totaling Rs 1,052.4 crore in the quarter under review. While revenue growth in the freight segment partially offset weakness in the passenger segment, which was attributed to the nearing completion of the Pune contract.

brokerage due to strong earnings

Despite these challenges, improved operational efficiencies enabled the company to expand its EBITDA margin to 11.4 percent in the January-March quarter, compared to 9.8 percent in the same quarter of the previous fiscal year.

Morgan Stanley recently initiated coverage on Titagarh Rail Systems, assigning it an ‘overweight’ rating and setting a price target of Rs 1,285. The brokerage views Titagarh Rail as a beneficiary of the resurgence of the Indian railways.

According to Morgan Stanley’s estimates, Titagarh Rail is currently valued at 35 times the price-to-earnings ratio (PE) for FY26, a valuation considered fair by the brokerage due to strong earnings visibility and improving return ratios. Morgan Stanley projects a robust 28 percent earnings compound annual growth rate (CAGR) for FY24-27, reflecting the company’s promising growth prospects.


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