Tuesday 7 October 2008

Avoid Sterlite Industries: Subramanian

R Venkat Subramanian, Head - Alternate Investments Group at Kotak Securities is of the view that one can ignore Sterlite Industries.

Subramanian told CNBC-TV18, "Sterlite Industries is no more the issue of the restructuring etc, it is now the global commodity movements. Yesterday you saw the Brazil market was down 15%. The commodity cycle is turning, where will that stop is difficult to guess. So from that point of view may be the market is somewhat overshooting the current cycle but I would avoid. I think you will get better opportunities, even if it were to go up little bit, when you have some stability in the commodity markets and you have some ability to estimate what the prices are going to be at that time you may be able to trade out of Sterlite. But to call the bottom is risky and obviously the company management actions don’t give you comfort. So I would perhaps ignore that."

Source: MoneyControl

Posted by Harsh at 00:11

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