InvestorQ : Why has Credit Suisse downgraded the metal stocks in India?
Niti Shenoi made post

Why has Credit Suisse downgraded the metal stocks in India?

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ishika Banerjee answered.
3 weeks ago
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Credit Suisse had warned about the unsustainable optimism in metal stocks some time back and it has now cut metal stocks from overweight to underweight. This was mentioned in a note on its latest India strategy. According to Credit Suisse, the P/B ratio or the Price to book ratio relative to market was close to a 10-year high. This was hard to maintain on a sustainable basis for too long.

Credit Suisse has also opined that the extreme inventory squeeze story for chemicals and metals may have played out substantially. In fact, one of the very popular indicators, which is the aluminium-to-steel price ratio is now close to a 20-year low. As a result, Credit Suisse has removed Tata Steel from their model portfolio. It expects input prices to moderate and is adding Ultratech and Asian Paints to its model portfolio.

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