fbpx
Skip to content
  • Investing Insights
  • smallcase Rationales
  • Inside smallcase
  • Postweek Reports
  • Subscribe

Demand for Steel on the Rise

Mentioned image
smallcase Banking Tracker
In spotlight
share: Icon-Whatsapp Icon-Twitter
Subscribe
Postweek Reports ,  

Demand for Steel on the Rise

smallcase postweek report
Author Naveen K R
Published May 28, 2018
Mentioned
Mentioned image
smallcase Banking Tracker
Share
Icon-Facebook Icon-Twitter Icon-Email
Reading Time: 2 minutes

GDP growth will push up demand for steel

Significant recovery of the global economy as well as demand from the housing & construction sector in India is expected to lead to favorable outlook for steel in India according to a news report. IMF has recently forecasted that India will grow at 7.4% during the 2018-19 financial year up from 6.7% last year.

The continued growth in GDP in India indicates that major steel consuming segments such as construction, real estate/housing, capital goods/machinery, consumer goods, automobiles and the energy sector shall benefit, thereby pushing up demand for the metal.

Benefit from growth of the metals sector by buying the smallcase Metal tracker. The tracker has returned 30.99% over the previous 1 year compared to Nifty returns of 11.52%.

smallcase metal tracker

Banks reduce NPAs as promoters settle dues

The banking sector finally seems to be making some progress on the non-performing assets (NPA) front. According to a news report, promoters of 2,100 companies who had earlier defaulted on repaying loans to banks have now settled their dues, worth around Rs 83,000 crore, before action was initiated under the newly-enacted Insolvency and Bankruptcy Code (IBC).

After the resolution of all 12 NPA cases referred to insolvency proceedings by the RBI in its first list, banks are expected to write back more than Rs 1 lakh crore onto their books. This will directly add to their bottom line and help in reduction of NPAs. Banks are also working on a plan to resolve Rs 70,000 crore worth of NPAs in the power sector, through operation and maintenance contracts. 10 such projects are expected to be resolved next month.

The smallcase Banking tracker allows investors to take exposure to banking sector stocks and benefit from boost in the bottom line of banks.

smallcase banking tracker

Markets range bound

Markets were range bound this week on the back of political uncertainty in Karnataka and rising oil prices. Sensex gained a modest 0.22% and closed at 34,924.9, Nifty closed at 10,605.2, up 0.08%.

Domestic institutional investors pumped in Rs 5845.44 crore during the week.

Author

  • Naveen K R

    Investment Associate at smallcase Research.

    View all posts

bankingbanking trackermetal trackersector trackers
Icon-Facebook Icon-Twitter
Download App

Naveen K R

Icon-facebook Icon-Twitter

Investment Associate at smallcase Research.

You may want to read

​

What’s your wish for Budget 2022?

All Too Fast (10-minute delivery’s version) 🧣

Why Invest in Equities

Rainbows and Unicorns!

  • Previous post1.5 Lakh Affordable Houses for Urban Poor
  • Next postIncreasing Incomes Benefit Consumer Companies

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

You must be logged in to post a comment.

Welcome back to smallcase blog

New here? Create an account

Forget password
or sign in with

Sign in with Google

Register for this site!

Sign up now for the good stuff.

Lose something?

Enter your username or email to reset your password.

or sign in with

Sign in with Google

Your subscriptions

Weekly wrapup of all investment news and alerts from the markets

Lost your password?
  • smallcase – Invest / SIP in stock portfolios
  • About
  • Disclaimer
  • Twitter