Tata Steel, NMDC hit 52-week high; L&T, Hindalco touch record high
Of these 36 stocks, around 21 recorded new highs in intra-day trade. These include Larsen & Toubro (L&T), Sun TV Network, Hindalco Industries, APL Apollo Tubes, Bajaj Electricals, Rain Industries and Sterlite Technologies
Besides NMDC and Oil India, NHPC, Steel Authority of India (SAIL) and SJVN from the public sector undertaking (PSU) hit 52-week highs on BSE.
Tata Steel, the largest gainer among the S&P BSE Sensex stocks, was up 3% to Rs 754, while APL Apollo Tubes too rallied 13% to Rs 2,373 on BSE.
Analysts at Emkay Global Financial Services expect steel prices to maintain the strength on the back of trade protection measures, consolidation in Chinese steel industries and expected improvement in industrial and infrastructure activities in India.
“Higher grade iron ore prices also are likely to maintain strength, as Chinese mills are now using better grade. Coking coal prices are too likely to remain firm. In case of non- ferrous metals, we expect mixed trend. For aluminium, better clarity should emerge post winter season; China’s expected new capacity will be crucial for the global demand supply dynamics. Higher supply is likely to weigh on Zinc prices. Mine ore and coal prices are expected to remain strong in 2018,” the brokerage firm said in metal & mining sector update.
L&T hit a new high of Rs 1,305, up 2%, extending its previous day’s 2% gain on BSE. In past three weeks, the stock outperformed the market by gaining 10% against 2% rise in the S&P BSE Sensex. In past one week, L&T has received orders worth of Rs 9,634 crore in various segments.
According to Business Standard report, L&T reported a slew of new orders in the December quarter, which analysts expect will help the engineering conglomerate match the current financial year’s order intake with that of the previous year. The company might also positively surprise with a higher growth rate in order intake, if the expected defence orders fructify. CLICK HERE TO READ FULL REPORT.
Karvy Stock Broking maintains a “BUY” recommendation on L&T with target price of Rs 1,461.
“L&T is well positioned to ride the infrastructure boom in the Indian economy through its excellent execution capabilities in diverse sectors like infrastructure, oil & gas, defence, metals & mining, railways etc. coupled with its balance sheet strength when compared to the highly stressed balance sheets of its many smaller competitors in the sector,” the brokerage firm said in a report.