Rajesh Jain of SMC Global Securities is of the view that one can buy metal stocks.
Jain told CNBC-TV18, "Metal sector is currently dealing at an impact of an expected price regulations by the government and the dip in the ticker which has happened as a result of this tweaking of value, offers a good entry point because the steel story for India is very robust, both from a fundamental volumes point of view, we know that which demand; thanks to the infrastructure housing etc, and also the entire sectoral consolidation process because there is a whole host of small companies which would be up for grabs, should outlook worsen a bit or at the same time the international majors like the Mittal’s have been descending into this country. So there is a whole host of consolidation re-alignment opportunity also available for investors within this space. So I would use this opportunity to buy into the steel space and you have a precedent in cement last year, look at the gains you posted mid year after the price regulation clouds have started out."
Source: Moneycontrol.com
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