Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

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.


Why Commodities Prices are Rising

Apr 9, 2024

From energy to metals, prices of most commodities have witnessed significant increase. Here's why.

Beaten Down Smallcap Stock Joins the Green Hydrogen Race

Dec 9, 2023

From commodity chemicals to green energy, this smallcap company could stage a turnaround with its recent foray.

FACT: Good Times to Keep Rolling?

Oct 20, 2023

Is the rally in FACT running out of steam?

GMDC: What Next for this 12-Bagger Stock?

Oct 11, 2023

Is GMDC's risk-reward ratio still in favour of investors?

Why Hindustan Copper Share Price is Falling

Aug 22, 2023

Shares of the company rallied over 18% in the past one month, only to fall in the subsequent sessions, erasing almost all the gains.

CCL Products: A Multibagger in the Making?

May 24, 2023

CCL Products: Evolving from differentiated commodity player to FMCG brand

Hind Copper vs Hind Zinc - The Best Metal Stock of 2023?

Dec 22, 2022

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

Aug 17, 2022

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

Jul 8, 2022

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

Top 3 Commodity Stocks to Watch Out for in 2024

Jan 8, 2024

The year ahead promises exciting shifts in demand and supply, creating plenty of opportunities for these three companies.

Metals & Mining Mutual Funds: A Smart Way to Invest in the Commodity Boom

Nov 12, 2023

The improved efficiency and emphasis on sustainability in the metals and mining sector has gained investors traction

The Great GMDC Bull Run: The Beginning or the End?

Oct 16, 2023

Is the risk reward in GMDC still in favour of investors?

Inflation Will Fall. Add These 5 Stocks to Your Watchlist

Sep 7, 2023

If inflation falls, these companies could do well.

Why MCX Share Price is Falling

Jul 3, 2023

MCX share price plunges 12%, drops the most in three years. What is dragging this monopoly stock down?

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.