Commodity stocks like Hindalco, Nalco will remain under pressure in near term: Vijay Bhambwani

Vijay Bhambwani, Author, CEO, BSPLindia.com in a chat with ET Now gives his views on commodity stocks.



ET Now: Any specific strategy that you may have on some of the commodity stocks? What is happening with commodity stocks as such?

Vijay Bhambwani: We are witnessing profit taking in the base metal pack. Industrial metals are succumbing to various kind of news pressure points. Take a look at aluminium and copper. These are 2 high visibility front line counters.

Therefore, this weakness in copper and aluminium prices will reflect in stocks like Hindalco, Nalco. You might just see Hindustan Zinc and Hindustan Copper also react to this news.

So in the absolute near term, these stocks will remain under pressure because the underlying commodities themselves are showing signs of stress.