IGL stock has absorbed the PNGRB blow: Prakash Diwan

In a chat with ET Now, Prakash Diwan, Head-Institutional Clients Group, Asit C. Mehta Investment Intermediates Ltd, gives his views on stocks. Excerpts:

ET Now: What about the PNGRB gas price blow? Do you think the market has digested all the pain? Do you think names like IGL, Petronet LNG as well as GAIL could crack further today?

Prakash Diwan: We possibly may not see that happen on IGL because it has anyway taken the beating that it would have, the extreme that we have seen of that 45% cut in the morning yesterday was the lowest it could probably have withstood in terms of this front.

For the other companies, especially GAIL, that is a very interesting case study. You have a lot of pipelines that are actually in the offing for GAIL. In fact, a lot of new ones are getting commissioned in this period till up to June and if this is a case of pricing that GAIL would have to comprehend with, it is going to be disaster for somebody who has spent so much on capex.

So maybe the damage would not be much deeper than what we have already seen. There is this hope that there could be some respite. Finally, fair justice would be meted out to all these players but that would take its time and in the meanwhile the negative impact could spread to some other companies as well.