InvestorQ : metal share due trade war faces loss what to do buy more at dip or sell share.
aryan kharche made post

metal share due trade war faces loss what to do buy more at dip or sell share.

Answer
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K V RAO answered.
1 year ago


Trade war is a passing phenomenon. Both the sides have to come together and matter will be sorted out. In fact, when it's sorted out market will witness a big rise. So identify metal blue chips and invest for a long term of at least 2years.


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1 year ago


There are two ways to look at metal shares. You can look at the pure commodity players like Vedanta and Hindalco which are into base inputs like copper and aluminum. They are too dependent on what happens in China as China continues to be the largest consumer and hence drives the demand and price of the commodity. While the trade war has been quite volatile, it is likely to drag for a long time. During this interim period, any slowdown in world demand is likely to be negative for these stocks.

Another option for you is steel stocks like Tata Steel and SAIL. These stocks are riding on the boom in domestic steel demand. Indian steel demand is expected to grow 3-fold by 2030 and most steel companies are expanding capacity substantially ahead of that. This is the story that could be really favourable for Indian investors and that is the story to look at. Also, steel companies are available at reasonable valuations.