Core Viewpoint - Prabhudas Lilladher (PL) remains bullish on large-cap stocks, selecting 11 stocks to buy, while also identifying 7 mid and small-cap stocks, totaling 18 preferred picks [1][12]. Market Performance - Nifty has shown resilience over the past three months, trading at 26,175 with a gain of 290 points, needing to cover 90 points to surpass its lifetime high of 26,277 [2][14]. - The ongoing rally is attributed to strong corporate performance in 2QFY26, with sales, EBIDTA, and PAT growth of 8.1%, 16.3%, and 16.4% respectively, alongside an EPS upgrade for Nifty [3][14]. Economic Drivers - Economic momentum is expected to be driven by domestic demand, influenced by several factors: 1. Income tax rate cuts benefiting over 80% of individual taxpayers [6][14]. 2. Anticipated 100 basis points rate cut by the RBI to stimulate growth [6][7]. 3. Healthy rural incomes supported by a strong monsoon and robust harvests [9][14]. 4. Low inflation rates, with CPI at 1.7% for September and projected at 1% for the December quarter, enhancing real purchasing power [10][14]. 5. GST rationalization contributing to demand revival [11][14]. Banking Sector Outlook - Improvement in bank performance is expected, with Net Interest Margins (NIMs) having bottomed out and credit growth recovering from 9% to a projected 11-13% in the second half of the year [8][14]. - Benefits from lower interest rates are anticipated to reflect in liability repricing from 3Q26, with potential for an additional 25 basis points rate cut in FY26 [8][14]. Stock Recommendations - Preferred large-cap stocks include ITC, Larsen & Toubro (L&T), Mahindra & Mahindra (M&M), and others [12][14]. - Broader market picks include Ajanta Pharma, Fine Organic Industries, and Voltamp Transformers [12][14]. Government Capex Concerns - There is a potential cool-off in government capital expenditure, which has increased significantly since COVID, with a 40% rise in 1H capex possibly leading to a 10% year-over-year decline in 2H26 unless the government exceeds its capex allocation [12][14].

Core Insights - Five stocks have been added to the Zacks Rank 1 (Strong Buy) List, indicating strong potential for investment Group 1: Company Earnings Estimates - West Bancorporation, Inc. (WTBA) has seen a 7.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - James River Group Holdings, Ltd. (JRVR) has experienced a 10.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Commercial Metals Company (CMC) has reported a 12.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Pan American Silver Corp. (PAAS) has seen a 9.2% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Agnico Eagle Mines Limited (AEM) has experienced nearly an 8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3]

Group 1 - ADNOC Gas has signed a $4 billion deal to supply natural gas to EMSTEEL for 20 years starting in 2027, focusing on lower-carbon energy [1][2] - The agreement strengthens the partnership between ADNOC Gas and EMSTEEL, highlighting their commitment to sustainable economic growth in the UAE [2] - ADNOC Gas supplies 60% of the UAE's natural gas needs, emphasizing its strategic role in the nation's industrial growth and energy security [4] Group 2 - The UAE has approved a $150 billion capital program for 2026–2030 to expand its national energy strategy, which includes significant increases in oil and gas reserves [3][5] - Oil reserves in the UAE have increased by 7 billion stock tank barrels to 120 billion STB, while gas reserves have risen by 7 trillion cubic feet to 297 tscf [5] - The board of ADNOC has approved CAPEX of $150 billion over the next five years to enhance upstream capacity, expand gas output, and accelerate growth in downstream and chemicals [6]

Group 1: Commercial Metals Company (CMC) - Commercial Metals Company is a steel and metal products provider with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 12.5% over the last 60 days [1] - The company has a price-to-earnings ratio (P/E) of 11.35, significantly lower than the industry average of 21.00, and possesses a Value Score of A [1] Group 2: Alcoa Corporation (AA) - Alcoa Corporation produces and sells bauxite, alumina, and aluminum products, also holding a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 5.8% over the last 60 days [2] - Alcoa has a price-to-earnings ratio (P/E) of 11.16, slightly below the industry average of 11.60, and possesses a Value Score of A [2] Group 3: James River Group Holdings, Ltd. (JRVR) - James River Group Holdings is a specialty insurance company with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings has increased by 10.5% over the last 60 days [3] - The company has a price-to-earnings ratio (P/E) of 5.46, which is lower than the industry average of 8.30, and possesses a Value Score of B [3]

Core Insights - Steel Dynamics, Inc. (NASDAQ:STLD) has been downgraded by UBS from Buy to Neutral, with a revised price target of $165, up from $158, due to valuation concerns after a 22% stock price increase since August [2] - The company reported a revenue of $4.8 billion for Q3 2025, marking an 11% increase year-over-year, with a consolidated operating income growth of 33% and adjusted EBITDA rising 24% sequentially [3] - Steel Dynamics has achieved record quarterly steel shipments, benefiting from reduced import levels and improved performance from its Sinton facility [4] Financial Performance - Revenue for Q3 2025 reached $4.8 billion, an increase of 11% compared to the previous year [3] - Operating income was reported at $508 million, with net income at $404 million [3] - Adjusted EBITDA for the quarter was $664 million, and cash flow from operations totaled $723 million [3] Market Position - Steel Dynamics is a significant player in the US steel production and metal recycling industry, operating multiple steel mills and finishing facilities nationwide [5] - The company has produced finished aluminum flat rolled products for industrial and beverage can markets, as well as hot band for the automotive sector, with customer qualifications occurring sooner than expected [4]

Core Insights - Nucor Corporation (NYSE:NUE) has been upgraded by Wells Fargo from Equal Weight to Overweight, with a new price target of $167, up from $147, due to higher US steel price forecasts for 2026, which are expected to increase 2026 EBITDA by 12% to $5.1 billion [2] Group 1: Financial Performance and Projections - In Q3 2025, Nucor raised its CapEx guidance to $3.3 billion from $3 billion due to accelerated project spending [3] - The company is projected to benefit from higher steel prices, which will positively impact its EBITDA in 2026 [2] Group 2: Product Focus and Market Position - Nucor has shifted focus towards specialized steel products, such as racks for data centers and doors for large structures, which are expected to have higher margins and more resilient demand amid the AI investment boom [4] - The company supplies over 95% of all steel products used in data centers, indicating a strong market position in this growing sector [3]

Core Insights - Marco Siscaro is recognized as a Lifetime member of The Inner Circle, highlighting his professional achievements and contributions to the industry [1]. Company Overview - Marco Siscaro serves as the CEO/CFO and Region Americas Manager of voestalpine High Performance Metals LLC, leading a technology-driven organization focused on innovation and operational excellence in the international steel market [2]. - Under his leadership, the company has strengthened its presence in the premium steel segment by emphasizing customer centricity, organizational transparency, and strategic communication [3]. Leadership and Management Style - Marco engages with his team and the entire organization, providing status updates and strategic initiatives to foster a collaborative environment [3]. - His management philosophy is rooted in a desire to learn and maintain an open mind, guiding the organization through growth and strategic transformation [5]. Academic Background - Marco holds a Doctorate in Management from SDA Bocconi, where his thesis focused on leadership approaches and organizational behavior, and an MBA from Pepperdine University [4]. - His academic achievements and CFA charterholder status underscore his commitment to professional and financial excellence [4]. Future Focus - Looking ahead, the company aims to continue growing and expanding its technological capabilities to meet the evolving needs of the global steel industry while maintaining strong leadership [6].

Core Insights - U.S. officials in Kyiv reported that Ukraine has agreed to the core elements of a peace deal brokered by President Trump, with only minor details remaining to be finalized [1] - The stock market is expected to react quickly to the news, particularly affecting the energy and defense sectors, which have already shown signs of decline [2] Company Insights - **ArcelorMittal**: - The company has achieved a year-to-date return of 82%, with its stock reaching a new 52-week high at $41.75 [4] - Its market capitalization stands at $31.76 billion, supported by a P/E ratio of 12.43 and a dividend yield of 1.15%, indicating strong investor confidence [5] - ArcelorMittal is well-positioned to benefit from potential reconstruction efforts in Ukraine, which could drive demand for steel and industrial materials [6] - However, logistical challenges and the pace of renovations may impact the company's ability to capitalize on these opportunities [7] - **Raiffeisen**: - Raiffeisen is one of the largest lenders in Russia not subject to sanctions, playing a crucial role in trade payments, including gas exports [8] - The bank's stock has surged over 100% year-to-date, trading at $10.06 [8] - The future of Raiffeisen in the post-war period remains uncertain, but it could benefit from reduced political pressure and potential new deals if a peace agreement is reached [10] - The bank faces scrutiny from Western regulators, and a complete exit from the Russian market is still a possibility, making it a riskier investment with significant upside potential [11]

The Union steel ministry is preparing to infuse more than ₹400 crore into Salem Steel Plant, the stainless-steel unit of the Steel Authority of India Ltd (SAIL), marking a sharp policy turn from its earlier intent to privatize the loss-making mill, according to two senior ministry officials. The move signals a broader shift in the Centre's approach to distressed public-sector steel assets. Instead of pushing strategic units to the disinvestment block, the government is increasingly opting for state-led revi ...

Summary of China Basic Materials Monitor (November 2025) Industry Overview - The report focuses on the **China Basic Materials** industry, highlighting signs of **weaker demand** across various sectors, including white goods, renewables, and construction, which are experiencing a sequential deterioration beyond seasonal factors [1][1][1]. - **Infrastructure** projects are at multi-year low start rates due to funding challenges from local governments [1][1][1]. - The **automotive sector** remains robust currently, but concerns are emerging for the first quarter of 2026 [1][1][1]. - **Energy Storage System (ESS) batteries** are seeing accelerated growth, with positive expectations for 2026 based on producer feedback [1][1][1]. Demand Trends - Current demand in China is reported to be **7-12% lower year-on-year** for cement and construction steel, and **5-10% lower** for flat steel, copper, and aluminum [1][1][1]. - Finished goods inventory has increased, primarily due to metal fabrications and selected appliances and machinery [1][1][1]. - The **forward orderbook trend** is mostly stable month-on-month, with **61%** of respondents indicating an increase in downstream sectors and **35%** in basic materials for November [2][2][2]. Supply Dynamics - On the supply side, there is excess production and safety inspections leading to a contraction in output in key coal-producing regions [1][1][1]. - Incremental changes in cement and steel production have been limited [1][1][1]. - Recent weeks have seen improvements in margins/pricing for coal, aluminum, copper, and lithium, while steel prices have softened and cement prices remain stable [1][1][1]. Key Statistics - The report indicates a **deceleration in demand** due to high commodity prices and the diminishing momentum from trade-in programs [1][1][1]. - The **current demand** metrics reflect a significant decline across various materials, indicating potential risks for investors in the basic materials sector [1][1][1]. Conclusion - The China Basic Materials industry is facing challenges with weaker demand across multiple sectors, particularly in construction and infrastructure, while some segments like automotive and ESS batteries show resilience. The supply side is also adjusting to these demand changes, with implications for pricing and production strategies moving forward.