Buy Reliance on declines: K R Choksey Securities

In a chat with ET Now, Deven Choksey, MD, K R Choksey Securities, shares his views on Reliance.

ET Now: On the charts Reliance Industries?

Deven Choksey: KG D6 which was the root cause of the derating of the stock, would become the cost for the rerating of the stock now. Already we have seen that the government has given the KG D6 capex approval to Reliance is not entirely good part. The second part is that BP is keen and they are putting in the proposal for investing further into D6 blocks.

So, the things are likely to be little bit more favourable going forward on the oil and gas exploration side for Reliance. And that is where the entire run up in the stock can be explained. There may be temporary break into the stock price because of the appreciation it has had in the recent past.

However, any fall in the stock price could become once again a buy opportunity for global investors to begin with and then local investors thereafter. Most of the ETFs are taking a contra bet at this point of time on Reliance counters.