Commodity stocks are moving in line with the Chinese markets: Shashank Khade, Kotak AMC

In a chat with ET Now, Shashank Khade, Senior VP, Kotak AMC PMS, gives his views on commodity stocks
What are your thoughts on commodities because of the large commodity stocks - Sterlite, Tata Steel, Hindalco large commodity stocks have appreciated by a good solid 10 per cent to 15 per cent from the recent lows?

Commodity stocks are again moving in line with the trend in the underlying commodities, be it ferrous or non-ferrous metals. Most importantly the trade is clearly coming because of the way China is positioned. There is a clear hope that Chinese markets will revive and the demand will pick up for metals. Commodity stocks are moving in line with the Chinese markets. It is more to do with China and less to do with India and India’s demand. Again the fiscal cliff related relief which happened led to a burst of sorts in commodities itself. That is the reason why the trade is really playing out.