Metals stocks may see healthy correction: Anand Rathi

Metal stocks may witness some profit booking after the stellar rally in the past one year. The Nifty Metal index has jumped 124% since September last year, while it has gained over 6% during the past one week. The index traded 0.42% higher at 5,635 in the morning trade on September 2. Osho Krishan of Anand Rathi Shares and Stock Brokers said, "Nifty Metal index can see some profit booking in the near term. Tata Steel and Jindal Steel have already entered the phase of consolidation. We must see a healthy correction in the metal space." Commenting on the benchmark equity indices BSE Sensex and NSE Nifty which are hovering at their record high levels, Krishan said that the market has reached an overbought zone and therefore one should stay cautious now. "Only banking stocks will drive the index from here onwards," he said. The market watcher is positive on the FMCG index and he also expects some kind of bounce in the pharma sector. The Nifty FMCG index traded 1.42% higher at 40,208 in the morning trade, while the Nifty Healthcare index was up 0.84% at 9,244. With a rally of 4.22%, Marico was among the top gainers in the pharma index. It was followed by Jubilant Foods (up 2.52%), Godrej CP (up 2.32%), Dabur (up 2.29%), Hindustan Unilever (up 2.17%) and Colgate (up 1.54%).