Shares of Sesa Sterlite surged 5 percent intraday on Monday after Kotak upgraded it to buy from a reduce rating. The brokerage has set a target price of Rs 250 on the stock, stating that Sesa Sterlite is likely to gain most from the coal mining auctions. According to Kotak, key triggers that can drive the stock include strong zinc pricing outlook from mine closures and also expects some asset sweating now from aluminum investments that are idle for long. Meanwhile, other metal stocks like Hindalco and Tata Steel are also up 2-3 percent with the index gaining 2.4 percent. The new found love for metal stocks is because the cabinet is likely to take up Land and Mining ordinances this week which may give Centre few discretionary powers over states. According to CNBC-TV18 exclusive, the mining ordinance may give the Central government discretionary powers over states incase they take too long to renew or give licences for mining and introduce strong penalties in case of any wrongdoings. The mining ordinance is to do with amendments to MMRDA Act.
No comments:
Post a Comment