Book profits in metals, buy again at low levels; positive on Metropolis, says Prakash Diwan

Market expert Prakash Diwan believes scrappage policy on old vehicles is good news but in the medium-term. He also advises investors to take profits in metal stocks and re-enter at low levels.

“People are getting excited about a Maruti Suzuki and Mahindra and Mahindra (M&M) and all, they might not incrementally see such a huge difference because old vehicles that are phasing out are probably the ones that will get replaced with Tata Motors product or Ashok Leyland or possibly even an M&M but you have to be a bit picky about that and nothing in the short-term for sure,” he told CNBC-TV18 in an interview on Monday.

On metals, he said, “Copper has its own orbit but then this decadal high that we see whether this can continue to generate alpha beyond here, that is a big question and then I would believe that the pause would probably last at least about three-four months then you could see the cycle getting to be resumed. Definitely, it makes sense to book some profits and then re-enter at lower levels.”