Metals do not make sense as it tend to be volatile: Sonam Udasi, IDBI Capital

In a chat with ET Now, Sonam Udasi, IDBI Capital shares his views on metal stocks.

ET Now: What do you make of the trade, somehow the metal stocks holding firm even in a sideways market and actually moving up but do you think there is more strength in store for some of the metal names?

Sonam Udasi: Frankly if you ask from a fundamental perspective unless you have a two-year view on it, metals really do not make sense because tend to be very very volatile. On the other hand, there is a broader market which is looking attractive because today’s bout can be seen as a profit taking not really a deep cut or something.

So as the market edges higher, there will be more profit taking and investors need to take that into account. The broad sectors that investors need to look at are banking, autos where really decent amount of re-rating can happen and money can be made over the next two years. Media is another sector that people can look at.

Large part of the midcaps in different segments, companies like Sintex, Symphony, some of which were not doing well in the past have suddenly started to get things together. Those will see outperformance going forward.