Positive on metals, be company-specific while trading: Vikas Khemani

In a chat with ET Now, Vikas Khemani, CEO, Edelweiss Securities shares his views on the metal space. Excerpts:

ET Now: You had said that metal selectively look bullish. They have rallied since then. Is that one reason why you are avoiding them right now or they also form a part of your overall portfolio?

Vikas Khemani: To some extent it is also a part of the overall portfolio and it has already rallied but I do think that if you take a medium to long term view, here also there is lot of opportunity, the reason being that these stocks are very attractive, though right now capacity utilisation is fairly low and margins are sort of suppressed but as the growth comes back and as investments pick up, metals also will do very well and return of overall global growth also is good news for metals as a sector and we have seen reforms happening in China.

Therefore most of the dots are getting connected as far as the metal segment is concerned. You have to be company specific, you have to look at ferrous, non-ferrous metals and must know which company as a fully backward integrated company you should look at. So we are positive on the sort of metal sector as well.