Investors can bet on strong metal stocks post recent correction: Rajesh Agarwal

After a sharp gap-up start on Monday, domestic equities turned volatile in noon deals. The S&P BSE Sensex was up 200 points at 55,530 levels, while the Nifty50 index was at 16,493 levels, up 43 points. Broader indices, BSE MidCap and SmallCap, meanwhile, slipped 0.5% and 1.2%, respectively, amid losses in metals, financials, and auto stocks. IT index, meanwhile, scaled fresh record high. Rajesh Agarwal of AUM capital spoke to Money9 on whether investors should worry about the dips.

“This consolidation in markets was due after the long one way up-move, many stocks have gone up despite no fundamentals, Nifty moved up 5%  in 11 sessions. There was euphoria in markets. However, right now many stocks are available at good valuations so one can use these dips to accumulate even midcaps”, he said.

He also added that the lack of triggers is leading to market consolidation. What could in fact work in favour for markets is the lower crude oil prices, he believes.

He also believes one can look at buying strong metal names after the recent correction.

On the newly listed stock Nuvoco,he said “One can still look to buy at Rs 500 for the log term growth”

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