Avoid metals: Rajesh Kothari, AlfAccurate Advisors

Rajesh Kothari, MD, AlfAccurate Advisors in an interview with ET Now, talks about the metal space


What’s your overall opinion on metals right now as a story and keeping in mind how volatile they are, would you be taking a position?

No, I do not think so. We generally avoid metals as a sector because I do not think that the global underlying demand growth will support probably the current metal prices. You might see upward and downward movement in the short term but as a sector, it is an avoid sector, at least for next 2-3 quarters. Also the supply overhang from China, the antidumping thing, which comes on and off in various commodities and, therefore, even from the competition perspective, I do not think that it will protect the Indian company’s margins, at least over next 3-4 quarters.