Don't expect a big bull run in metal stocks: Rakesh Arora

economictimes.indiatimes.com:

«So we are in kind of a snooze zone at the moment. People are waiting and watching as to which way it will go. It will take quite a lot from the Chinese government to really propel demand for commodities,» says Rakesh Arora, Go India Stocks.com.

The Chinese economy languishing, the impact on the global commodity market, do you think that is one of the key triggers which is weighing heavy on the metals market?
Definitely, China being 50% of all global commodity trade, whatever happens in China has a big influence.

So currently, there is a mixed feeling, at the one end, you have economy which is not doing that great. And at the other hand, there is expectation of stimulus.
So we are in kind of a snooze zone at the moment. People are waiting and watching as to which way it will go.

It will take quite a lot from the Chinese government to really propel demand for commodities.
So they would need to come out with some fiscal stimulus, which they have hesitated till now. And monetary policy stimulus, which they have been giving have been largely ineffective. So it is a wait and watch situation from a Chinese point of view.

If you take China out of the equation and throw in the upside which could come from India and the surprise which could come from let us say, Europe and US, could that net impact be positive or it will be still neutral?
US is expected to get into recession and UK is kind of already there.

So they are unlikely to move the needle as much. And India is only like 5-7% of global trade. So at the best, we can have some domestic demand and people can sell material but prices are largely driven by global trade, etc.