Pre-emptive buying seen in metal stocks: Sandip Sabharwal

In a chat with ET Now, Sandip Sabharwal, asksandipsabharwal.com, shares his view on Metals.

ET Now: Is the enthusiasm we are seeing may be today it is stock specific but is it a little unjustified?

Sandip Sabharwal: So, what is happening in metals space, the way I see it, is that a lot of people are now betting that the worst is over, in terms, of metal prices. So, stock prices, typically, move up or down as a multiple of the underlying asset price, commodity movement. So, that is what is happening.

Steel, obviously, is receving help from the government as it has stepped in to protect the industry, the rupee has fallen to some extent, so that benefits them to some extent. With these factors in mind, there has been some uptick in steel prices, too. So, that is what people are betting on, people are pre-emptively buying these stocks.

ET Now: Is that what you are betting on is on?

Sandip Sabharwal: No, I am not betting on that.