Metals And Mining Earnings Preview - Strong Revival In Demand To Aid Robust Q4 Performance: Dolat Capital
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Dolat Capital Report
The ongoing strong revival in demand for the metals and mining sector has both structural and pent up components, in our view.
The pent-up component is from six quarters (FY20, H1 FY21) of weakness in demand/prices and could play out for several quarters.
While on the structural side, support for demand would come from Chinese stimulus and global central bank liquidity coupled with governments’ focus on infrastructure building in China, India and many other countries to make good the loss in services sectors.
This apart, there are various Covid-19 induced supply side constraints which will continue to keep the demand supply balance tight and underlying commodity prices robust.
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