Be selective while investing in metal stocks, say analysts

From an investment perspective, analysts caution against the steep valuation at which some of these stocks are trading at.

After witnessing a rally of 13.4 per cent in financial year 2017-18 (FY18), the Nifty Metal index has added another 5.2 per cent thus far in FY19. The up move in metal counters, analysts say, has been fueled by an upswing in base metal prices and crude oil, which they believe is likely to continue. From an investment perspective, they do caution against the steep valuation at which some of these stocks are trading at.

“I think base metals have risen quite sharply in line with some of the concerns pertaining to the United Company Rusal (UC Rusal) in Russia,