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Commodity Stocks in India

Commodity stocks are stocks of companies that produce the underlying commodity. So an iron ore mining company will be an iron ore commodity stock...and so on.

These stocks comprise a large segment of the stock market. Despite getting a lot of attention, these stocks are notoriously hard to invest in successfully.

These stocks tend to rise and fall with the price of the commodity. For example, the stock of a crude oil producer will rise along with the price of crude oil and vice versa.

These are cyclical stocks. They move up and down in cycles. This is all common knowledge in the market, yet investors regularly make mistakes in these stocks.

They buy them after the price has gone up a lot and then don’t sell quickly when the tide turns. The reason is the difficulty in timing the commodity cycle. Investing in these stocks demands an in-depth knowledge of the underlying commodity and its global market.

This is difficult even in normal situations. But it can get worse if there are any disruptions due to recessions, supply shocks, natural disasters, changes in government policies, and wars. Yes, that’s right, wars can give a boost to commodity stocks.

This is why retail investors often get burnt in these stocks and also why Equitymaster recommends extreme caution while considering these stocks for you long-term investment portfolio.

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Which is the best metal stock to trade? Find out in this video.

Adani Enterprises vs Tata Steel vs Vedanta

Nov 11, 2022

Metal stocks are looking good on the charts, but which one should you buy?

Goodbye US$ 100 Crude Oil

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The crude oil price is very close to an important support. It could crash if it falls below it.

The Nifty Metal Index Presents an Exciting Opportunity. Here's What You Should Do

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The metal index has been underperforming against the broader markets in 2022 as commodity prices have corrected.

Domino Effect: Why You Should Defer Your Long Trades

Jul 1, 2022

Find out why this is not the right time to go long on the market.

Auto Stocks are in the Fast Lane. Is it Time to Buy?

Jun 23, 2022

The auto index is outperforming the Nifty by a mile. Have auto stocks finally bottomed out?

Metals Stocks Start on a Rusty Note. Is the Rally Over?

May 23, 2022

Bulls can be in danger only on a weekly close below 5,090.

The Trend is Not Yet Rusty in Metal Stocks

May 17, 2022

As metal prices are bullish and the Nifty Metal index is at a support zone, the dips are an excellent buying opportunity.

Bargain Hunting in bullion

May 4, 2022

Gold and silver prices are looking reasonable, or are they? Find out...

Gold vs Silver: A Trading Opportunity

Feb 23, 2023

Should you trade gold or silver? Find out...

Nifty Metal Index Signals a Breakout. Watch Out for Outperforming Stocks

Nov 30, 2022

The metal index is breaking out and the momentum is likely to head northwards. The outperforming stocks could head higher.

The Shift in Global Supply Chains Could Unlock Huge Opportunities in These Three Smallcaps

Sep 19, 2022

Forget economic cycles and commodity cycles... Here's a structural shift that could help you with sustainable investing returns

Can JSW Steel Take the Metal Index Higher?

Jul 13, 2022

JSW Steel has outperformed the metal index since June 2022 and the bullish momentum still prolongs. Here's why...

Is Something Cooking in Tyre Stocks? I Believe Tyre Stocks Can...

Jul 7, 2022

As tyre is commodity driven sector, commodity prices have corrected over 20%. This is good news for tyre stocks.

Why Falling Oil Prices Aren't Boosting Equities

Jun 24, 2022

In this video, I'll explain why the stock market is not going up when crude oil prices are falling.

10 Stocks to Buy in the Commodity Supercycle

Jun 1, 2022

The commodity rally is not over. Consider these stocks to buy.

Has Inflation Peaked Out?

May 20, 2022

While everyone is assuming the worse case scenario for inflation, will it surprise on the upside?

Is the Bull Market in Metals Over?

May 5, 2022

Metal prices are down sharply. Is the metals supercycle over? Find out...

Should You Invest in Commodity Stocks?

Apr 28, 2022

If you're thinking of trading a commodity stocks, watch this video...