Chemical vs Metal Stocks: The US Central Bank Federal Reserve has cut its policy rates by 50 basis points. In such a situation, the question is what should we do now in metal and chemical stocks? Answering this question, CNBC-Awaaz Managing Editor Anuj Singhal said that he had said earlier also to book profits in metals and even today he is saying to book profits in metals.

Anuj says that the rate cut events were likely to trigger profit booking in metals. The main reason for profit booking in metals is not related to America but to China. China is a huge consumer of metals. The kind of slowdown in China is putting pressure on metals. In such a situation, some profit booking in metals is advisable.

But these factors will be very positive for chemicals. China is a very big producer of chemicals. The theme of China plus one can work in India. However, the earnings of chemicals have also been very poor. There is selling at every rally. But if one has to choose between chemicals and metals, then it will be better to bet on chemicals.

It is worth noting that the United States Federal Reserve cut its policy rates by 50 basis points on September 18. This is the first rate cut in the last four years. Although this aggressive rate cut may support the Indian equity market in the short term, market experts have expressed concern that the market may see this move as a sign of the Fed's growing fears about a possible economic recession in the US.