Reliance is a sell: Prashasta Seth, IIFL Wealth

In a chat with ET Now, Prashasta Seth, IIFL Wealth, shares his views on Reliance Industries.

ET Now: What is the call on Reliance now?

Prashasta Seth: It is a sell. The environment in China continues to be very weak and if that is the scenario, it will be very difficult for petrochemical and refining margins to see substantial improvement from where we are.

The potential upgrade to earnings from that is potentially priced in. What market is also pricing in is a sharp recovery in terms of production of gas. I am not sure how much of that is going to happen but unless you see a sharp rise in production of gas from current levels, I would be a seller of Reliance rather than a buyer.