Positive on Arvind Ltd, KG Denim for short term: Gaurang Shah

Gaurang Shah, Asst VP, Geojit BNP Paribas Financial Services, in a chat with ET Now talks about Arvind LTd and KG Denim.

Few days back, there was major buoyancy in some of the stocks such as an Arvind Ltd as well as KG Denim on the bank of the manufacturer saying that they will pass on the raw material cost to the consumers. What do you make of these two stocks today?

I think the moves on the textile, which are related to the cotton field are fairly limited and news driven. The problem is that some of these companies which have got orders from the overseas market. I do not know what is the future of these particular orders i.e. whether they will be executed or whether they will be pulled back.

Momentum is there on fall back of the deficit in cotton availability in the commodity market and because of that you have seen some kind of a significant up growth but again to take a medium to longish call I do not think they are better sectors and stocks to get invested. From a short term point of view or a trading point of view I think you can definitely trade into them but nothing from a medium to long term.