Upcoming budget expected to trigger metal stocks including aluminium

<p>The last week has been marked by a quick gain in all the major indices (SENSEX &amp; NIFTY) and Nifty Metal index outperforming the major indices by a good margin, recording gains of 6%.</p> <p><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/aluminum_ingots_550.jpg" alt="News" width="517" height="226" /></p> <p>The current week stock market activities are expected to be driven mostly by the details provided by the Finance Minister, Arun Jaitley from Wednesday morning which is the budget day for the next Financial Year.&nbsp; The Finance Minister&rsquo;s budget will set the tone for the metal market as there is no major trigger working at present and the market participants are ignoring poor earning considering positive budget expectations.</p> <p>The Indian Metal industry is expecting few announcements which will cheer up the industry.&nbsp; As for the aluminium industry is concerned; the expected announcement of Minimum Import Price (MIP) on aluminium has already driven stocks like Hindalco and Vedanta to gain quick momentum. &nbsp;Both , the stocks were up by 11% &amp; 7% respectively in the previous week. &nbsp;</p> <p>The base metal companies will also be hoping that the government will not hike coal tax for the current Financial Year as the government already increased coal cess in the last two years.</p> <p>{googleAdsense}</p> <p>Any significant announcements in the infrastructure sector along with import duties on raw material may trigger a rally in metal stocks. &nbsp;</p> <p>All the base metals including copper, aluminium, nickel, lead and zinc will be in focus in the second half of this week after the announcement of the budget based on how it is going to treat the metal sector.&nbsp;</p>