Bullish on Reliance Industries: Ambareesh Baliga, Way2Wealth

Ambareesh Baliga, COO, Way2Wealth Brokers Pvt. Ltd., in an interview with ET Now, talks about Reliance Industries


Reliance Industries and some of the oil marketing companies, what’s your own take on the same and apart from the recent news that we have been hearing, even the fact that Goldman Sachs has downgraded the counter to a neutral and for the oil marketing companies, an upgrade has come about, what’s your own sense?

We are quite positive on Reliance and any sort of corrections like what we are seeing today and possibly going ahead. In case that we see levels of Rs 950 - Rs 960, at those levels, we would be buyers in Reliance because we believe in the longer term story, possibly there may not be any fireworks in the next one or two quarters but if you are talking of longer term, surely this is one stock to be in.

At the same time, oil marketing companies, we are not fundamentally positive on them, clearly looking at the way the oil is moving and at the same time, the way the subsidy in fact is shooting up. They are not being able to increase the petrol and diesel prices but I suppose in the shorter term, possibly from a trading angle post the elections, there would be an increase in petrol prices, that could be a small trigger for these stocks, so one can trade in these stocks from that point of view. Basically buy now, exit possibly 5-6% higher when the petrol prices have increased. Other than that, fundamentally we are not positive.