Avoid getting trapped into divestment theme: Karvy Private Wealth

K Ramachandran, CIO, Karvy Private Wealth, in a chat with ET Now talks about the PSU divestment theme.

Would you play this PSU divestment theme because the FPOs that coming are really not exciting the markets? Would you play any of the suspected divestment candidates, do you see it as good investment options?

I think increasingly divestment or disinvestment is taking place at close to their intrinsic value or may be even at a premium. So I think the FPOs or IPOs are no longer exciting or they are not really designed in such a way that they leave too much for the investors. So while yes an announcement can result in stock prices going up, I think it’s a trap and one should avoid getting into this trap.