Wait and watch commodity stocks: Prashantha Seth

Prashastha Seth, Senior Fund Manager, IIFL Wealth in a chat with ET Now shares his views on commodites

ET Now: Do you see a sense to buy cyclicals, particularly commodities?

Prashastha Seth: Not from a long term perspective. From a trading perspective, some of these stocks have been beaten down. From a fundamental point of view, given the fact that you are seeing increasing signs of slowdown in China and then there are concerns that it might actually slowdown more than what we are envisaging at this point of time.

I would kind of wait and watch how China pans out because without the growth engine of China you would see a sharp fall in the commodity prices. Obviously rupee depreciation will help Indian entities but it is still not a play from a fundamental perspective.

From a trading perspective, these stocks give you a strong bounce from time to time and you could trade those rallies. So if you see markets continuing to do well, these might outperform the markets but still not from a investment point of view.