SP's coming into power will benefit Reliance Infra: Devang Mehta

In a chat with ET Now, Devang Mehta, VP & Head Equities Sales, Anand Rathi Securities, shares his views on ADAG pack.

ET Now: A pocket that has been rallying in trade is of course the ADAG pack that has been buzzing on the back of an SP government at the state in Uttar Pradesh, how would you play the ADAG counter over the next couple of weeks?

Devang Mehta: In fact we had advised our clients to buy Reliance Infra which appears to be one of the best stock in the ADAG pack. The pack had not done well over the last one year but Reliance Infra is one stock which is into a lot of different segments.

It was also available below its book value so I guess a lot of run up has been there into the stock and I think that Samajwadi Party coming into power is surely going to benefit Reliance Infra and subsequently Reliance Power of which 85% share is held by Reliance Infra.

So, I guess this stock will tend to benefit but I would advise clients to buy this on dips rather than buying it right now when there is going to be lot of volatility in the market in the coming days.