Irani negative on metal space

Mehraboon Irani, VP, PMS, Centrum Broking is negative on metal space.

Irani told CNBC-TV18, "We are passing through a bad phase as far as metals go, I have been negative on this sector. Even right now just because prices have come down and the balance sheets would be very healthy, I do not think I would venture out and go and buy the metal stocks now because we need to understand it is a complete slowdown all over the world. I think what ArcelorMittal announced yesterday is a clear indication of the fact that even corporate are accepting the facts. So cut in production definitely while it could be possibly a little bit healthy over a medium-term as far as the demand supply equation goes but for the time being I personally feel that there could be some more pressure on metal stocks because I think you cannot go away from the fact that there is a complete slowdown and it is going to affect this particular sector."

He further added, "We have seen a complete meltdown as far as prices go, I am not talking about the stock price, I am talking about the metal prices itself. I personally feel that this pressure on metal prices is going to continue. So I remain negative on the sector even at the moment while many would feel that otherwise the stocks would look attractive and there is nothing much to fall but that is not the way one should be looking at these stocks. The outlook is uncertain right now so I do not think I am tempted to buy into any metal stock even at the present levels."

Source: Moneycontrol