Neeraj Dewan, director of Quantum Securities, on Thursday, said investors should buy Reliance Industries Ltd (RIL) on dips.
In an interview to CNBC-TV18, Dewan, said, “Broader market if you see, the few stocks which had become very expensive in the very short term timeframe, RIL was one of them. The way it had moved up, it was a vertical rise, it was just moving up every day. So, some correction would have come in the stock. Looking at all the valuations whether it is the retail, whether it is the telecom, at a price below Rs 1,500, I will again see some buying coming into Reliance. So, the correction was due because of the way it has gone up and it is again coming into a territory where one can start buying again.”
Speaking about Bharti Airtel, he said, “If something is going to happen in the telecom space, even if they have to pay the adjusted gross revenue (AGR) dues, I think Bharti Airtel is still in a better position as far as Vodafone-Idea is concerned. You saw Bharti Airtel moving up a lot as the base price they have set up for these telecom companies. There was also talk about some relief which may come in the AGR dues. So, I think we will see some more correction in Bharti Airtel, maybe 5-7 percent and then maybe again one can start accumulating as the company at the end of it will emerge stronger because of the kind of pressure Vodafone-Idea is facing.”
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