Negative on entire commodity space: Dipan Mehta, Member, BSE and NSE

Dipan Mehta, Member BSE and NSE, in a chat with ET Now talks about the commodity space.

Are there any sectors that you would completely stay away from?

Commodities is one sector which we have been avoiding and even as of now we will bit uncomfortable with the entire commodity space and that has more to do with overall weakness in the global market. No doubt the sector has been doing well as steel has been moving up as sugar, aluminum. Even shipping had started doing pretty well over the past 2-3 trading sessions. So may be that call is not working out as per our expectation.

But over the medium to long term we remain negative on entire commodity space and that is one sector we would like to avoid. If there is overall improvement in the global economy and if global GDP rates start moving up 1-2% higher than what they are just now, then we may have to rethink on the entire commodity sector.

But with such kind of tepid growth rates in US and in the Europe as well as in China - where there is flat growth in terms of growth rate increases - the international arena for commodities is not that attractive.

What would be - sectorally - the shorting candidates for you?

Normally we try and work with investors and have a long term view on the market - 6, 12 month, 2 years. Shorting is not something that we specialize in and would like to advice your viewers or our clients. If at all there is a correction, then we look at which stocks have corrected more than the others, where are the attractive levels, where entry could be made and more on those aspects rather than actually giving shorting picks in this market. So I just like to refrain from giving an answer to that question.