Wait and watch for sugar: Ashu Madan

Ashu Madan, COO, Religare Securities, talks to ET now on sugar.

What do you do with the sugar pocket? Clearly sugar price movements will determine how these stocks would move but inventories at all-time highs, the stocks are not, they are trading at very close to their all-time lows and on price-to-book valuation or replacement costs as well, these are fairly cheaply available?

Yeah, that's right but if we work on this theory, then there would be many other stocks and sectors, but I do not think so this theory works in this kind of a market when you start comparing the valuations and book values and within the sector also compares so many stocks.

But all said and done, currently as of now today, I would still say the current phase that cannot be anything, which can be handpicked up out of this market, so most of the sectors or the most of the stocks will perform in tandem.

No shape to choose and pick the outperformance currently, which is available in the market because it could be very short term that today or tomorrow or maybe in a span of 3-4 days or in tranches, some of the other sectors outperform.

But as of now in the past we have seen more downside than any of the sectors, which we have talked about or even if few of them were so-called defensive or the safe havens like IT or FMCG or pharma.

We have seen beyond a point no sector sustains in the market in isolation unless there is stable market, so I would reserve my comments on any of the sector including sugar and wait for a while to conclude that which could be sectors, which can outperform or perform better than the rest in the times to come.