Expect another 10%-15% lower levels on JP Associates in near term: Angel Broking

In a chat with ET Now, P Phani Sekhar, Fund Manager-PMS, Angel Broking, shares his views on JP Associates and infrastructure space.

ET Now: What do you think is leading to the collapse in some of these infrastructure names, JP Associates for instance yesterday?

P Phani Sekhar: I was not really convinced about the rally in this infrastructure stocks to begin with. So while I was maintaining that this time around, the value of Nifty all the way to 5400 was more comforting than what we have seen in the last one year, because I thought the market was pretty discerning but still you had some of these infrastructure stocks like JP Associates or within the micro-irrigation space Jain Irrigation. These are some of the stocks that has rallied, which clearly baffled me because the recurring theme that the market was avoiding all along and again that is something that has come back to haunt both these stocks. So JP Associates I will not be able to tell why it fell 9-10% yesterday as to the timing of it but the fact that it fell and it is sliding to lower levels does not come as a surprise. So I would be expecting another 10% to 15% lower levels on JP Associates in the near to medium term.