Commodity stocks depend on QE3: Sonam Udasi, IDBI Capital

Sonam Udasi, Head of Research, IDBI Capital in a chat with ET Now talks about commodity stocks.

If at all rally happens in the commodity stocks, would the advice be to get out or lighten up the positions?

Actually it depends on QE3 and what’s the quantum. In the end right now from what I see if there is money printed globally, it maybe good news for emerging markets in the short term and maybe some of the commodity names but it is essentially a bad news over the long term. I am of the view that if a QE3 is not announced, over say a month or over the next quarter, investors would take it positively for emerging economies and especially for India, so I would take from that logic.