PSU disinvestment candidates in F&O segment may see huge short selling: Sandeep Shenoy, PINC research

In a chat with ET Now, Sandeep Shenoy, Head - Equity, PINC Research, shares his views on disinvestment candidates.

ET Now: Do you think that the divestment candidates such as NTPC and BHEL would remain under pressure irrespective of what the market does?

Sandeep Shenoy: If the stock is in futures and options (F&O) segment, then obviously the stocks will stay under pressure because a separate set of investors or funds will come and create so much noise in it that you will have a tough time in figuring out what is happening.

There are one or two companies which could be given 'A' grade in as far as operational excellence and valuations are concerned, but others are having some kind of impediment on their valuations or cash flows. So, it is going to be a tough call. Having said that, the noise which is going to be created by people who are going to short the stock, and try to make a quick buck on the disinvestment, is going to be quite huge.