Hold Steel Authority of India (SAIL), says Sajiv Dhawan of JV Capital Services.

Hold Steel Authority of India (SAIL), says Sajiv Dhawan of JV Capital Services.

Dhawan told CNBC-TV18, "SAIL is in the news for its follow on public offer, so the price should stay reasonably firm if the government wants this to go through smoothly and attract retail interest into the stock. They are going to use the money for further expansion. So the company is doing very good compared to they were several years ago and most investors will remember that this is a penny stock.”

He further added, “The valuation again on the higher side in its peer group compared to some other steel companies. So probably hold on if you are a medium to longer term investor. If you are a short term trader wait till this follow on issue comes in the next 4-5 weeks or so and then maybe you could use that as an option to lighten up and reduce the positions. But the sector does look reasonably robust and if it is a significant crush in the markets then we would look to accumulate again this stock on any decline.”