Where to do bottom fishing in this volatile market? Gurmeet Chadha answers

economictimes.indiatimes.com:

Gurmeet Chadha, Managing Partner, Complete Circle Consultants, says “you can do some bit of bottom fishing in the mid and smallcaps space in railway, defence stocks and some of the auto ancillary stocks. There have been very good corrections there but be a little more patient. It may not just come up the way you are used to seeing it last year.”

Let us talk about chemicals. Do you think now these chemical stocks, the sector as a whole, could see a turnaround coming in in a slow and steady way?
Gurmeet Chadha: Business performance wise, you probably will have another quarter or two. I think most of the inventory destocking has happened. It is a very cyclical sector for most chemicals except for a few certain chemistries and there is the factor of China dumping. I think in a few spaces you will find government intervention as well. But I also think that the bad news is in the price in most such names. We saw Aarti moving up when post earnings came in last month in February. One has to be selective here. You can also look at agrochemicals with now election season coming. So, we are looking at something like Tata Chemicals.

We are also tracking something like Apcotex with marquee promoters, which is the former Asian Paints promoter family and we are also looking at some more names in this space. So, you got to be selective. If you have a little patience for a quarter or two, there could be better risk-reward. But I would not say just play the entire sector in entirety. I think that may not be a good call. Play it