Rajesh Agarwal, Eastern Financiers is of the view that one should sell SpiceJet.
Agarwal told CNBC-TV18, “It depends on the time horizon and the kind of investment planning caller has. If it is an investment bet I would suggest not to buy, rather to sell holdings on every rise. If it is a momentum play, just wants to trade then okay, there are news flows always there coming in these kinds of stocks. As far as fundamentals are concerned with Foreign Direct Investment (FDI) in aviation almost a possibility we have seen a lot of momentum in the sector, but nothing concrete has come as yet. The companies are reeling under losses due to high fuel costs, airport charges and all those things.”
He further added, “I do not think that there would be any change in fundamentals in the next three-four quarters at least. So it will not be advisable to buy SpiceJet as an investment bet, but as a trading bet, yes there are news flows coming here and there and every time you get the trading opportunity, but for investment it is a clear sell.”