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Zee Business exclusive research on stocks to keep under your radar amid volatility in commodities


Investors must keep spinning (textile), chemical and shipping stocks under their radar amid volatility in commodities such as cotton, PVC, soda ash, Zee Business Senior Research Analyst Arman Nahar tells Managing Editor Anil Singhvi in exclusive research. 

Cotton prices have slumped by 28% in a month, and spinning companies such as Nahar Spinning, Nitin Spinners, RSWM shall be seen as directly impacted. These counters contribute around 50-55 per cent cost of raw material for cotton, he added. 

Similarly, PVC prices are down 12 per cent in a month and this may likely have an impact on Chemplast Sanmar and DCW, drive around 80 and 60 per cent of revenue from PVC, analyst said.

While Soda Ash in the last one month had surged 6 per cent. Stocks such as GHCL, Tata Chemicals, and DCW garner revenue of around 57, 44, and 12 per cent from this commodity.  

In the same line, Costic soda has been stable globally, stocks like Gujarat Alkali, DCW, DCM Shriram, and Grasim drive revenue between 36-8 per cent from this commodity, the analyst pointed out. 

Baltic dry index is down 26 per cent in the last one month, which shows an impact on shipping stocks such as SCI and GE Shipping, he added. 

Gold prices were steady on Tuesday, as traders refused to commit in either direction in the absence of market-moving catalysts. Benchmark US 10-year Treasury yields eased after gains in the previous session, buoying demand for gold. 

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