Indian metals stocks "stung" by China demand slowdown -ICICI Securities

Shyam Metalics and Energy

16/01/2023 05:49

** India's Nifty metal index  .NIFTYMET  falls as much as
1.43% on Monday
    ** Metals stocks "stung" by cooling demand in top consumer
China, per Dec trade data, says ICICI Securities
    ** Two roadblocks in Dec were weak global demand and
industrial slowdown post COVID resurgence, ICICI says
    ** ICICI expects Jan '23 trade data to be largely muted due
to Chinese New Year holiday and sees economic stimulus measures
announcement (after new year) key to demand rebound
    ** ICICI retains "cautious outlook" on domestic ferrous
sector, with its top picks being Jindal Steel and Power
 JNSP.NS  and Shyam Metalics and Energy  SHYE.NS 
    ** "Among non-ferrous players we see Hindalco  HALC.NS 
benefiting on potentially lower aluminium exports from China"
    ** JNSP down ~3% on the day, SHYE up 0.24% and HALC off 0.8%
    ** Metals index cuts YTD gain to 1.1%; index has risen for 3
years in a row, culmination with ~22% jump in 2022
 (Reporting by Hritam Mukherjee in Bengaluru)
 ((Hritam.Mukherjee@thomsonreuters.com; +91 9830427878))