Expect some upside in Tata Steel: A Dalal

Amit Dalal of Amit Nalin Securities feels that there will be some upside whether you buy a Tata Steel and Sterlite.

Dalal told CNBC-TV18, "I think both ferrous and nonferrous have participated and if you take something even like a Sterlite Industries, which is almost near cash valuations, definitely I think even a Nalco they all are distressed valuation purchases that one makes right now. One should not expect the metal or the underlying metal to give you a big rally and support the stock price rally going forward or suddenly a change in the whole structure of a demand and supply because finally we do know the reason why the prices of the metals have fallen is because there is a global shrinkage of demand and it has mainly come from the shrinkage of auto demand, which is a big factor for all metals be it aluminium, be it even ferrous metals. So there will be some upside whether you buy a Tata Steel or a Sterlite but one should be careful not to continue to buy at higher levels because there will be a correction once people realize that the underlying assets not going to follow through to the extent that one would like it to."

Disclosure: It is safe to assume that analyst and his clients may have an investment interest in the above stocks/sector.

Source: Moneycontrol