homemarket News

Expect a bull run for commodities for next 18 24 months, says Enam Holdings

market | Jan 4, 2021 12:32 PM IST

Expect a bull run for commodities for next 18-24 months, says Enam Holdings

Mini

Sridhar Sivaram, Investment Director at Enam Holdings, on Monday said that he expects a bull run for commodities at least for the next 18-24 months.

Sridhar Sivaram, Investment Director at Enam Holdings, on Monday said that he expects a bull run for commodities at least for the next 18-24 months.

Recommended Articles

View All

“We do see a sort of a bull run for commodities at least for the next 18-24 months,” Sivaram said in an interview with CNBC-TV18.
“If you extrapolate the current commodity price and put it in the earnings, the earnings growth that you get is substantially higher than what the stocks have done. We think that there is substantial upside for commodity prices in general,” he said.
Sivaram said that there is a sharp liquidity-driven rally that may continue. "Normally the last leg is very ferocious. So the party is continuing, it is better to stay on in the party for some more time,” he said.
In terms of financial stocks, he said, “We were becoming very constructive on public sector undertakings (PSUs) in general.”
He is a bit cautious on auto stocks. “The stocks have rallied very sharply, I wouldn’t chase them right now. Companies that are dependent on exports are facing some sort of a container shortage, commodity prices have significantly gone up, I don’t think they will be able to pass on everything. So as much as the demand is strong, there are numbers of other elements which are working against them right now,” he mentioned.
Sivaram prefers consumer discretionary companies over consumer staples companies. “Fast-moving consumer goods (FMCG) is not one of the favourite lists. The risk-reward is far higher and the valuations don’t stack up right now at these prices. As the economy starts to normalize, we would see spending coming back in many of the other discretionary category, so we would rather bet on those than staples.”
For full interview, watch the video…
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!

Top Budget Opinions

    Most Read

    Market Movers

    View All
    Top GainersTop Losers
    CurrencyCommodities
    CompanyPriceChng%Chng