There is a lot of stock specific action happening in the equity markets. Their counterpart in the commodity markets is also not without action. What are the triggers that are driving the markets and where is the action headed? Zee Business Managing Editor Anil Singhvi gives his take.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

Be it crude oil, metals, iron ore or sugar – there is enough action in the commodities. The Market Guru said that there will be volatility in the markets. He said that all the asset classes are seeing a lot of volatility over the last 3-4 days and this is happening across the world.

See Zee Business Live TV Streaming Below:

Citing example he aid there was action in metals and even sugar stocks are having a good run today. The prices have gone up by almost 6 per cent. The prices of steel have also increased.

All these commodities have been in the uptrend. There are no indications as of now that could suggest that the momentum will break.

Drawing a parallel with the Nifty, he said that the broader market is giving opportunities to the investors after every 100-150 points correction. At the maximum, it is 300-400 points. The reason behind this phenomenon is that the rate of growth is currently slow, the Market Guru said.

He said that the price correction will be less steep if the growth is rangebound. Even in the Mid Cap stocks, only those stocks have shown correction who hit circuits from time to time. Stocks which grow slowly also fall slowly, Singhvi said.

As the commodity prices grow fast, their downward correction is also very swift, the Managing Editor said.

Some volatility is expected to continue, he further said. Investors should not be too worried about the commodity markets as well, he advised. He said that the next 6-months look to be promising for the commodity investors.

Steel companies will stand to gain.

Stocks that are in action include Dwarikesh Sugar Industries, Renuka Sugar, Mawana Sugar and Avadh Sugar.

Among the metal stocks, JSW Steel, SAIL and Vedanta were in action at the time of filing this copy.  

Watch Zee Business Tweet Video Below:

On MCX, Gold was trading almost flat at Rs 45,998 per 10 gram, getting expensive by almost Rs 36 from the last closing price. Silver was trading down Rs 62,566 around this time, cheaper by Rs 70.