RIL will be good in long term: Mehraboon Irani, Nirmal Bang Securities

Mehraboon Irani, Principal & Head-Pvt. Client Group Business, Nirmal Bang Securities, in a chat with ET Now, give his call on oil and gas space



What is your call on the entire oil and gas space?

It is lack of clarity, which is possibly making stock prices come down and not many taking interest in these particular stocks. While it is true that the stock prices have shed a lot of weight, the fact is I do not advise anybody to buy these stocks in a hurry. The market needs a lot of answers, a lot of clarity on what is going to ultimately happen in this meeting. What sort of quantum of price rise is going to come, it’s the question of subsidy sharing.

As far as Reliance goes, I am quite confident that this is continuing to be a good long-term story but we have seen downgrades coming in this particular stock. the downgrades are mainly because of what has happened on the gas output as far as the pricing goes, and again the market is waiting for answers, so ultimately at the end of it all considering there have been quite a few disappointments that come from Reliance, Reliance at around Rs 840-850 is the price, which we see it coming to be in the next 1-3 months but that will be a price at which possibly it will qualify as the best frontline stock to buy. So Reliance maybe at Rs 850 is a stock we are ready to look at and we are quite confident or hopeful that it will come because we want to take a position in that but among the other stocks, the safest stock to buy would be Gas Authority of India that is if one wants an exposure to this sector at the present moment.