Is it time to get out of Shares related to commodities?

If you look at

Hindalco - ALUMINIUM
Hindalco

CAIRN - OIL
Cairn India Limited

GUJ NRE COKE -COKE
Gujarat NRE Coke

SESA GOA - IRON ORE
Sesa Goa

GOLD

ITC

and many more

It is time to book profits if you are holding them for years! I think commodity is finishing it's cycle and has peaked out!

There are far too many commodities.

Each commodity has a cycle of its own.

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Global economic activity does play a roll in determining demand, but only demand cannot determine the final price of a commodity.

Supply is an equally important factor in determining prices.

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and price alone doesn't determine profits of commodity companies.

costs too will have to be considered.

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For example, in case of steel companies, steel prices aren't the only important factor that determine profitability.

If prices of raw materials like iron ore and coke fall more than steel prices, then margins for steel companies may actually improve.

This is just an example - not a prediction.

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I would avoid making a blanket-call on commodities.

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I agree with you, even Sugar is starting its new Bull run!

I think I should have been more specific related to sectors I mentioned!

But Steel also have other problems, like slow growth of economy less steel in use and of course govt intervention time to time for steel prices?

Fertilizers also have same issue!

Cement is another problem of Govt intervention, there margin might also improve with raw materials getting cheaper!

I'm not sure that ITC is a commodity stock. See today's ET Investor Guide for a comparison of HUL and ITC.

If you say that ITC is a "sin" stock (meaning they make and sell naughty products: ciggies (ITC), booze (Mallya stocks), etc.), I'd agree

In addition, I read somewhere that sin stocks don't see a significant fall during bad times, perhaps because people turn to them for comfort or distraction. Just Google for "sin stocks" (with the quote marks).

In further addition, ITC is diversifying (not unsuccessfully) to reduce its dependence on earnings from ciggies.