Moneycontrol boarder Rajiv asks Prabhat Awasthi of Nomura Financial Advisory & Securities is there are any commodity-based sectors for investment where the cycle is about to turn around.
Awasthi has been underweight on metals. “We had gone overweight on metals in August last year. In November, we took out the overweight and pushed it into underweight again.”
At this point he is underweight because the Chinese data is weak. Also stock prices have rallied to some extent. Thirdly, he has lower macro expectations on how the dollar will continue to strengthen over a longer period of time which essentially would be negative for commodity prices. So, at this point in time, he does not suggest buying metals as a pack.
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