Stock talk: G Chokkalingam On Jindal Saw, MRF, JK Tyre

G Chokkalingam of Equinomics Research & Advisory says there is no possibility of the government taking any drastic move to discourage foreign inflows and thus he remains optimistic that there will be a turnaround in the markets as well as the industrial economy.

Stock Talk:

Don't Buy Jindal Saw: We have been staying away from steel and steel-related stocks for more than a year. There is no change in our view. The pain is going to continue in all the stocks related to steel sector, therefore I would not recommend a buy on any of these stocks.

Hold/ Buy MRF: I remain very bullish. I hold the stock for almost all my clients. The results are not surprising because natural rubber prices are down almost 15 per cent year-on-year basis and oil prices are down 51 per cent so there is a huge margin expansion for the tyre companies. In fact MRF now reported almost a 23 per cent operating profit. The global pain has a gain for the tyre stocks in terms of cheap raw materials. And I would still hold on the stock.

We have a short term target of 4200. In fact, the next 3-5 years I have a very robust outlook.
I believe it will create lot more wealth for the shareholders so I would suggest a hold on the stock.

Buy JK Tyre: We have a buy on JK Tyre as well. We believe this stock can give a 30-40 per cent return in a year's time.