Steel likely to shine, pharma range-bound

The shares of steel companies could strengthen further next week on hopes that prices will be raised in August.

The self-imposed moratorium on prices by steel companies ends this month and there is widespread expectation that prices will be raised in August. Steel makers refrained from making any direct commitment, but have hinted that a price hike in August is imminent.

Prices of steelmaking raw materials, such as iron ore and coking coal, have risen sharply on a strong demand from Chinese steel mills.

The shares of pharma companies are seen range-bound next week in line with the broader markets. However, Sun Pharma may head upward after announcing its April-June earnings on Monday.

Ranbaxy Laboratories, which will announce its earnings on Tuesday, is likely to be driven more by news inflow.

Among the mid-cap shares, Glenmark Pharmaceutical and Strides Arcolab are seen up.