We would not look to buy any of the divestment candidates, said Sanjeev Prasad, Managing Director and Co-Head of Kotak Institutional Equities, on Wednesday. He also said that the high valuations in the Indian market is a concern.

Speaking in an interview with CNBC-TV18, he said, “Would not look to buy any of the divestment candidates; I wouldn’t recommend any of these names. I don’t even know whether they will privatise or not because many of the companies will fall in the strategy category and it is becoming aggressively hard to figure out the terminal value of many of these companies.”

We have been bullish on metal companies for quite some time now, Prasad said.

“Obviously, it has negative ramifications for all the sectors which depend on metals as a key input and one of the worries which we are starting to see is given the unprecedented levels of price increases that we are seeing on the raw material side that is making things challenging for companies who are users of these products.”

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(Edited by : Ajay Vaishnav)