Maggi news too hot as of now; Nestle may remain under pressure in short term: Ambareesh Baliga

In a chat with ET Now, market expert Ambareesh Baliga shares his view on banking stocks post the Reserve Bank of India’s policy review.

ET Now: There is a lot of churn of news with regards to Nestle, with regards to the level of lead in its noodles brand Maggi. How much of lead is above permission levels? What is your view on the stock

Ambareesh Baliga: I think it is a great opportunity to buy the stock. That said, today is not the day to look at the counter. One may explore opportunities in the next few days, next few weeks because...

ET Now: Are you waiting for some more correction?

Ambareesh Baliga: Yes. Some more correction is still due because the news is very much hot as of now. I do not think that it will die down too soon. There will be some more adverse news coming in from other states. Therefore, I think that will have this stock under pressure for a while. But I think, it is a great opportunity because India is a huge market for Nestle to ignore. It cannot really forget and go away. It has to find a solution. We must remember that what happened to Cadbury, a couple of years back...

ET Now: Or Pepsi?

Ambareesh Baliga: Yes. Cadbury has bounced back. I think the same thing could actually happen for Nestle going ahead. Therefore, I see it as a great opportunity.