Cement space may underperform, says PN Vijay, Portfolio Manager, www.askpnvijay.com .
Vijay told CNBC-TV18, "I believe that the heroes of 2012 will be totally different from those of 2011. If you saw last 2-3 days in this New Year you are seeing a beta trade. In fact I did a beta weighted Nifty which means for Tata Steel I will put 1.6 and for ITC I will put very low beta weight. The Nifty has been moving up very smartly even yesterday and even today because people are selling ITC and HUL and buying Tata Steel and L&T , which means as of now people are doing high beta trade and cement was more a runaway commodity."
He further added, "It was a commodity which is not subject to global pleasures. Now the running away would stop and talking to people like India Cements they are working at 75% capacity utilisation. So Cement being hit by high coal prices, high freight cost, high interest rates. So I think it was run to safety type of thing and cement would under perform in my view in 2012."
