*RUPEE DESK: Steel Stocks Outlook for the week (18-22.06.2012)***
Stocks of major steel companies are expected to trade rangebound next week tracking key indices, which will take direction from the Reserve Bank of India's decision on interest rates Monday, and Greece's elections over the weekend. At its mid-quarter monetary policy review, the RBI is expected to cut the repo rate by 25 basis points to 7.75%, which will boost local shares. Greece's elections over the weekend will also lend cues to local shares. Shares may gain if parties that support austerity measures are elected as then the country may accept a bailout, allowing it to remain in the Eurozone. Investors also will take cues from the G-20 summit on Monday and Tuesday, where leaders will discuss ways to boost global growth and tackle the Eurozone debt crisis. Back home, seasonal slowdown in demand due to the onset of monsoon could pressurise prices of steel companies' shares. The industry's demand expectation has tapered down significantly over the last six months and now the industry is targeting 6-9% growth in next two years as against over 10% growth expectation some time back. Most companies have also started adjusting their capital expenditure schedules to cope with this environment. This could also keep sentiment subdued for shares of major steel companies in coming sessions. By RUPEE DESK [email protected] www.rupeedesk.in -- You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en.
