Reliance a long-term buy; gas price hike likely to be biggest trigger: Mehraboon Irani

In a chat with ET Now, Mehraboon Irani, Principal & Head-Private Client Group Business, Nirmal Bang Securities, shares his views on Reliance. Excerpts:

ET Now: Today led by the big boy Reliance, we have done reasonably okay for ourselves at 7696. Quick comment on Reliance as there is an uptick today. Did you like the numbers and do you think there is more in-store?

Mehraboon Irani: Well I could have asked about Reliance along with the overall market in the same sentence. But since you are asking specificaly about Reliance, honestly I do not feel that there are too many triggers right now for Reliance to take the markets up because now only if you want the markets to go up, you need some stocks which should take the markets up. Reliance is a heavy weight but considering the fact that gas price hike is not going to come in hurry, I think the biggest trigger is that and that should not come because we have got four state elections coming in the next three to four months.

So having said that the fact is from the longer term basis I like Reliance. I always said it is a dark horse in the entire oil and gas pack. But for the time being I do not think I am going to recommend the stock in a hurry asking people to buy. But in the short term, the stock is going to give you another 10-15 per cent. I personally do not think so. So at 1003 it is a great hold at the most but somewhere one should go and buy Reliance for the longer term but till the time the gas price hike is not behind us, I do not think there is any major trigger for Reliance to perk up smartly from the present level.