Stocks like JSW, Jindal Steel to lag: Sharmila Joshi

In a chat with ET Now, Sharmila Joshi, Head Equity, Peerless Securities Ltd shares her views on Metal and Power stocks.

ET Now: Assuming that this happens, to your mind at the top of the hat, which companies do you think would get affected the most?

Sharmila Joshi: The metal stocks where you are already seeing an impact and the power companies are expected to feel the heat.

Everyone is expecting to see agreements getting signed etc. There has been a complete slowdown in this space.

To my mind, this looks like a time when you could really come forward with some kind of solution especially as far as mining sector and the coal issue is concerned because of the kind of uncertainity in the sector for the last 1-2 years. It would be a big negative for a lot of the metal stocks especially stocks like JSW, Jindal Steel, Bhushan Steel and of course the power companies.

ET Now: What is your call on the equity markets?

Sharmila Joshi: If you look at the banking stocks or the capital goods space or even the auto stocks, they were mirroring the optimism that maybe 19th March will bring some kind of rate cut. A positive number simply means that you will have less ground to build and say that growth is slowing down or whatever.

So clearly the focus is now on the inflation number and also the 19th March event. In the interim, we must not forget the fact that this is a rally that is completely liquidity focussed.