Positive triggers in metal stocks are absent: Sandeep Singal, Emkay Global

In a chat with ET Now, Sandeep Singal, Co-Head Institutional Equity Derivatives, Emkay Global Financial Services, shares his views about metal stocks.

ET Now: What is the call on metal space?

Sandeep Singal: Metal is a global cyclical and it is very difficult to just have a very grip on these stocks looking at the domestic dynamics. We are seeing the headwinds in Chinese economy and it is slowing down and sleuth of a negative news coming month on month. World over, I would say positive triggers in metal stocks are absent. Even if they come, they are treated as one off and stocks are not really being re-rated. So, my sense is that metal stocks might perform in line and underperform, then outperform actually. But, within India if you see some bottom up strategy of investing, then Hindustan Zinc is one stock one can look at where there is a clear earning visibility because of its silver production and high rolling price of silver etc. So, that is a stock one can look at, because of cash generation. Otherwise, global cyclicals like Hindalco or Tisco etc, its difficult to recommend on whether they would be able to outperform, so neutral to underweight.