SP Tulsian of sptulsian.com shared his views on specific stocks and sectors. Speaking about the massive oil and gas rally, he said, the reason for the rise in upstream was only because of too much correction that has happened. So, won’t be taking a call on the upstream companies yet.
With regards to the downstream companies like Reliance Industries Ltd (RIL), if we take the case of petrochemical division – even if the margins seems to be little flattish maybe for a couple of months but overall things will be positive once things get normalized. So, on the petrochemical front, things will be seen quite positive. Moreover, due to the coronavirus scare, plastic and the packaging material used in the hospitals and everywhere is going to see the consumption in the petchem products going forward. That will be ramp up their margins because a huge fall has been seen in crude, he said in an interview with CNCB-TV18.
“Apart from that the capital raising plan of the company is very much in place on two fronts, one on Jio and second on the Saudi Aramco deal.
"So would continue to remain positive on the downstream products, very bullish on the downstream products like petrochemicals and on RIL,” he added.
With regards to Info Edge, he said, “I am taking a cautious view on it. There is no point in getting involved with this unpredictable volatility happening on events. If you seem to be invested in the expensive stocks like Jubilant Foodworks, PVR or maybe Bajaj Finance – all of them have corrected in the similar fashion in this carnage but there is no point in remaining invested because you need to have the comforting portfolio as well. So, I won’t be taking a positive call on this one. When you have big choices available in telecom like Bharti Airtel and Jio."
"It is better to start picking up the quality when the markets fall. One should flip the investment philosophy at this stage and look for quality when the markets are down. It is a volatility stage and thereafter we will be seeing a stability phase.”
“Market is poised for an excellent time for making investments in the quality stocks. So, keep an eye on the sectors which seem to be beneficiaries like we discussed - the petchem sector,” he further mentioned.
Disclaimer
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Disclosure: RIL, the promoter of Reliance Jio, also controls Network18, the parent company of CNBCTV18.com.
First Published: Mar 31, 2020 4:22 PM IST
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