Last Updated : Dec 20, 2014 11:59 AM IST | Source: CNBC-TV18

Stay away from metal space: Ajay Srivastava

Ajay Srivastava, CEO at Dimensions Consulting is of the view that one may stay away from metal space.

Ajay Srivastava, CEO at Dimensions Consulting told CNBC-TV18, "You have to stay away from metal stocks because these are very good trading stocks and they are trader's delight absolutely but for an investor, these are nightmare sitting out there and nothing tells us that in the next three-six months, there is going to be anything great happening. India is not a great consumption story for next six months, China has stabilised a little bit, Europe where it is, so nothing tells us that the story is going to change for these companies."

"Even if you look at the local regulatory scenario for these changes will they get the new mines etc, only for those companies who win coal blocks at a very cheap price and that is where you have to put a finger where the companies are that whoever is a company which is going to get a good amount of coal block allocation and the price is going to be very cheap, if global prices are the lowest in the last whatever years are, you have to pinpoint those stocks and go for it. Don't go for metal but go for the coal block allocation and mining because not many are going to bid for it and it is going to go very cheap over the long run. That is where the play is, coal blocks, the companies which are going to grab the coal block rather than a pure metal plays," he added.

First Published on Dec 20, 2014 11:59 am