India is in a capex mode, continues to invite lot of investment: Deven Choksey, KRChoksey Investment Managers

In a chat with ET Now,Deven Choksey, MD, KRChoksey Investment Managers said that, "we believe the metal as a commodity per se would have relatively better time as far as the cyclical upside is concerned in the metal space." Edited excerpts:

ET Now: Anything on Tata Steel, does this move change your view on Tata Steel or the group at large because they are now showing a commitment that if there is an asset which needs to be sold the new management also will go ahead and sell it?

Deven Choksey: Well I think we have been firm believers that whatever may be the outcome at the board level I think the group restructuring cannot be halted and that is what is getting validated here. We believe that in majority of the companies where they are holding assets which are not performing well or performing less according to the rational norms of investment returns, I would think that going forward whoever the new management comes into they would probably start looking at this, paring losses wherever it is required. So certainly I think the view is not changing.

On the contrary we believe the metal as a commodity per se would have relatively better time as far as the cyclical upside is concerned in the metal space. India is in a capex mode, continues to invite lot of investment into different-different areas including into the infrastructure in industrial segments. America is likely to get into the infrastructure building way after the new president comes into the office, probably you would see the kind of activity happening on that side would increase. So certainly believe that the metal commodities probably would assume up-cycle and that is where we would like to selectively stay long on to the metal commodity stocks.