Metal, oil & gas sectors see sharpest rally in seven years in CY16

Oil & gas and metal sectors are set to post their biggest yearly gain since 2009, when they had rallied 73 per cent and 234 per cent, respectively. Thus far in 2016, both indices have gained 26 per cent and 40 per cent, respectively, compared with a 0.98 per cent rise in the benchmark – the S&P BSE Sensex till Monday.On the other hand, classical defensive plays such as information technology and pharmaceuticals have recorded a negative return of nine per cent and 11 per cent, respectively, while consumer durables and real estate sectors lost nine per cent and five years, respectively, on a year-to-date basis. Astrology and Numerology Trading Tips

Among individual stocks, Hindalco Industries and Vedanta from the metal pack have become multi-baggers, gaining 100 per cent in 2016. Hindustan Zinc (84 per cent) and Tata Steel (58 per cent), too, surged more than 50 per cent thus far in the current calendar year. Indraprastha Gas, Hindustan Oil Corporation and Petronet LNG from the oil & gas pack surged between 52 per cent and 72 per cent during the year.   Stock Market Astrology Tips

As regards metals, analysts say the global rally has been driven by a surge in raw material prices (iron ore and coking coal) due to temporary supply issues and not by a structural improvement in demand. “While it is difficult to estimate the timing of normalisation of supply (until which iron ore and coking coal prices could remain elevated and domestic steel prices could see some short term increase), prices should trend lower in the longer term. Moreover, we do not see any meaningful lift to global steel demand outlook even if the recent ado about US/Japan increasing infrastructure investments is implemented,” points out a recent research note on the sector from Ambit Capital. Ashish Kejriwal, an analyst with Elara Capital remains positive on Hindalco and Vedanta. With aluminium producers focusing on cutting cost. Stock Market Astrology Tips