Wait and watch for gas stocks: Shashank Khade

Shashank Khade, Executive Vice President-Portfolio Management Services, Kotak Securities, talks to ET Now on various stocks.

What do you make of what is really happened and you would expect Reliance probably to react but some of the others as well have reacted while this is not a done deal as yet, the likes of IGL Petronet what do you make of all those decisions that could happen in the oil and gas space?

Tariff regulation on the marketing companies as well as the City Gas distribution companies this risk has been talked about for many years now and regulation of tariffs was clearly one sort of risk factor which a number of these city gas distribution companies had. Companies like Indraprastha Gas and Gujarat Gas and especially the ones who have access to APM Gas as well.

So this risk has been around at the same time the profitability of these companies has been far higher than what the regulator would have really wanted them to have. So one does not know how things will evolve and what finally will be the outcome but this has been a risk which has been clearly been discounted at different points in time in these stocks. So one has to really wait to really see what the regulator finally does rather than taking a call halfway through.