RIL looks attractive at these levels: TS Anantakrishnan

ET Now spoke to TS Anantakrishnan, Head, Prime Wealth Management, on his views on the Reliance stock.

What is your sense on a counter like Reliance and the strength that its offering to the market?

TS Anantakrishnan: We do like Reliance. We think the worst is over behind in terms of the GRMs. The Singapore GRMs, which were at 1.9, have started to move up this month and we believe the worst in terms of refining margins are over.

It is true that there is about 1.1 million barrels per day of refining capacity which is coming in but at the same time you have about 1.4 million of refining capacity which is going out of the system, specifically with closures in Europe and other regions.

Therefore, we think the worst is behind as far as the refining margins are concerned. Petrochemical business would be stayed, would not move much. I think the margins would possibly dip a little bit and with KG Basin kicking in full gear I think they would soon get about 80 million barrels per day peak production, so from that standpoint I think we like Reliance at these levels.