Vedanta-Cairn deal may not go through: Ajay Bagga

In a chat with ET Now, market expert Ajay Bagga talks about the Vedanta-Cairn India merger.

ET Now: It seems that the market has given thumbs up to Vedanta-Cairn India merger. It is believed that the deal with help the merged entity utilise Cairn's cash pile in a better way. What is your view?

Ajay Bagga: Yes, it seems so. The stock bounced back on Monday. I am not recommending a buy or a sell, as we have to wait to see what the minority shareholders finally come out with.

It is quite an onerous task to get 75 per cent of the minority shareholders to vote. May be the market is realising that the deal might not go through. That could also be one reason behind the gains seen on these two counters, Overall, with respect to the market, I would still be very cautious as the bounce back is not substantial.