If deallocation happens, some stocks could take big hits: Taher Badshah, Motilal Oswal AM

In a chat with ET Now, Taher Badshah, Senior Vice President & Co-Head Equities, Motilal Oswal AM, talks about the expected outcome of the coal block deallocation verdict.

ET Now: Tomorrow is the crucial day of the SC verdict on coal block allocation. Do you think the apex court is going to decide on a penalty, or could we see some deallocations as well?

Taher Badshah: We see a lot of conflicting news coming up in the last some days. So, we will have to wait for the eventual result. Stocks have probably priced in some of the negative news already. But we will have to wait and see as to what exactly is the outcome.

Some people say there could be a deallocation of all the blocks other than the 46 that have been identified by the government. If that were to be the case, then there is probably more downside for some of these names on the cards.

But it is really hard to take a definitive call as of now. We will have to wait it out for a day or two.