Q4 numbers - pleasant surprise by commodity stocks?

Come 1st April, stock market starts factoring in current year earnings, now for FY22, as also, on estimating Q4 numbers on a realistic basis. Generally, FIIs, Fund managers and big investors are seen having reservation (or read allergic), of investing in commodity stocks, due to cyclical nature of each commodity.

But this time it is seen the best time for all commodities, be it ferrous metal (flat products like H.R.coil or long products like angles, channels, blooms, billets, bars etc.), non ferrous metal (copper, aluminium, zinc, lead), precious metal (silver), cement, paper, chemicals (bulk, speciality or API), crude, iron ore,  fertilisers (urea and complex fertilisers), rubber, sugar, graphite and other natural resources. Analysts are expecting bumper Q4 and Q1 numbers from these sectors. Collectively, over 400-500 listed stocks get covered in these sectors, but sadly (or as per market dynamics), about 90% of these stocks are small and micro cap stocks.

But in such bullish cycle, some stocks in the past seen having risen by 3x to 9x, in 12 months, depending on longevity of cycle of each commodity. So, one must not miss on such calls, merely on pre conceived notions, while atleast 15% of PF (with cap of 20%) can be, or must be deployed in these sectors to outperform any benchmark indices. Many sector cycles are seen having just begun.

This is neither a buy nor a sell recommendation, while stock recommendations are provided exclusively to our paid members in the Member Zone.