Tata Steel, Hindalco may see some profit booking: PN Vijay

Tata Steel and Hindalco may see some profit booking, says PN Vijay, Portfolio Manager, askpnvijay.com.
 
Vijay told CNBC-TV18, “Tata Steel was available at Rs 360 not long ago and Hindalco at Rs 110, they have all marched ahead. But this is what happens in market. The whiff of some recovery in China and metals take off. Metals are still rather oversold.”
 
He further added, “If you looked at previous rally peaks these metal blue chips one would say are trading at a large discount. From that point of view there is still value left. It is probably good to wait a bit more, because if you are buying risk and I think you should be buying risk at least in the first half of 2013 one would probably still stick to Indian rate sensitives on the hope that there would be a softening of interest rates on the ground and there would be a beneficial effect for that. Metals are a bit riskier and one might see profit taking in TISCO and Hindalco after the 20 percent rise we have had. So at this level I do not recommend fresh investment in metals, because the overview is still not as clear about future profitability and future global demand as one would like it to be.”