As FII flows move to India, which underperformers will make a comeback? Sanjiv Bhasin answers

economictimes.indiatimes.com:

Sanjiv Bhasin, Director, IIFL Securities, says “Commodities are back. Steel prices are going to go through the roof. Tata Steel is a clear outperformer. Before the budget, you will see Rs 170 on Tata Steel. Second pick would be Ashok Leyland. On a year-on-year, there has been a 9% increase in their sales in commercial vehicles. Tata Steel and Ashok Leyland are my two favourites. On the trading side, HDFC and Reliance are now the big heavyweights which will drive the index back to 21,500 and beyond.”

I have been observing your commentary for almost a fortnight now, you are positive, but at the same time, you are nudging the investors. If you are sitting on very fat profits, do take some profit off the table as well. So, what is the positioning right now in the market?
Sanjiv Bhasin: We have been cautioning you that the midcap rally was unsustainable, it needed a sharp correction. And you got a sharp correction of 3.5% on a single day and beyond. But that is where the feeling of missing out is tremendous. Mutual funds are sitting on cash and they try to time the market which is unfortunate and that is why they are now latching on to any correction.

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I still think that we are headed up. Let me also clarify, I did not expect the dollar to start to trade lower so fast. Now, the dollar, if it breaks 100 for any reason in the next two weeks, all hell will break loose. Emerging markets will go through the roof and the foreign flows will become even more dynamic than you thought. I