Aviation stocks may burn fingers: Jagannadham Thunuguntla, Equity Head, SMC Capitals

In a chat with ET Now, Jagannadham Thunuguntla, Equity Head, SMC Capitals, talks about Aviation Stocks.

What is your sense on aviation? There is lots of talk about how Etihad may go into the offices of either Jet or KFA, more likely KFA if the recent news flow is to be believed but do any of these stocks present a trading perspective at all or you would stay away from this pack?

From the fundamental point of view, it absolutely makes no sense thinking about aviation stocks but having said that looking at deal, the deal is the only excitement barring that it does not make any fundamental sense but if you want to play with that deal, it is better to let the terms and conditions and one of the clarity about at least with whom they are in talks come out, at least that will give a better clarity. As of now, even there is no clarity to the extent whether we are talking about Jet Airways or Kingfisher, then at that time it is just a euphoria. If somebody tries to enter at this point, they may burn their fingers.