Monday 10 November 2008

Sell steel stocks on rally: Vijay

Portfolio Manager, PN Vijay is of the view that one should sell steel stocks on rallies.

Vijay told CNBC-TV18, "Steel is still very far out of the woods. It is still in a very weak global demand situation. The Chinese stimulus would help because its infrastructure spending that they have planned to do. However, conventional economic wisdom is that the commodity cycles take much longer to work themselves out because of the inertia in the system compared to financial and equity and exchange cycles. So steel is really sort of a sell on rally type of situation."

Disclosure: Analyst might have positions in the stocks/sectors discussed through their portfolio management accounts or through proprietary accounts.

Source: Moneycontrol

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DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.