Positive on metals space: Gaurav Doshi

Gaurav Doshi, VP Equity Specialist, Morgan Stanley PWM in an interview with ET Now talks about metals space.

Most of the metal counters, particularly the steel based companies this time around have posted a PAT decline on the back of heavy raw material costs, coking coal prices inching up higher. Do you think going forward from here we should stay with them?

We are seeing the weakness in the metal space primarily emerge from the guidance Arcelor Mittal and POSCO gave and even they cited the similar concerns about raw material price increase affecting margins.

We continue to stay positive on metals but the only change in outlook that we are really making is that instead of expecting great growth going ahead, we just expect growth to moderate or slow down a tad bit and in our view input costs should stabilise these companies will find ways of mitigating margin risk and we continue to be biased in the metal space on any dip with a 12-6 month view.