RIL group stocks are good buys: Sanjay Dutt

Sanjay Dutt of Quantum Securities feels that the Reliance group stocks continue to be good buys on every dip. He said, "They continue to remain good buys on every dip. Particularly from the counters like Reliance Capital and Reliance Energy. Similarly, for Reliance also, more details are required to know how it will pan out, which will take time. Therefore, on every dip one can definitely accumulate all these stocks."

Excerpt from an interview:

Outlook on the market:

I think as far as investors are concerned, one needs to be very selective. One cannot take a broad call whether to buy in or not to buy in. I am very optimistic on the technology counters and the heavy commercial vehicle counters like Telco. So that even if one gets the timing wrong, in terms of the index coming off 100-200 points, the downside risk is limited. So, for the index call it is very difficult to say whether one should buy now or not. 

On Reliance shares:

They continue to remain good buys on every dip. Particularly from the counters like Reliance Capital and Reliance Energy. Similarly, for Reliance also, more details are required to know how it will pan out, which will take time. Therefore, on every dip one can definitely accumulate all these stocks.

On Reliance going ahead:

One would want to hear much from here for the fact that what is the contour of the demerger or whatever the re-organisation will take place. One wants to look at and see what are the implications for the Reliance Industries shareholders.

They continue to be robust and strong. One still needs to get details as to how it is all going to pan out and that will affect all share holders.

Of F&O action in Reliance counters:

To the best of my knowledge, there has been good institutional buying today also, there was a talk of about 3-3.5 million shares of Reliance Industries being picked up in the market by institutional investors. I do not know how far that is correct. But I think there is institutional buying today besides retail buying.

When you see such an event coming in the market, particularly affecting the Reliance stock, it is very difficult to time whether you be smart and buy it at 5% lower. So investors who particularly want to come in and who do size trade do not mind paying that extra 2% to 4% premium. At least, on a day like this where there is good liquidity, they will be able to buy.

On an opportunity to buy at lower levels:

I think it is possible. You can get them about Rs 15 to 20 cheaper in Reliance Industries. Like I mentioned some of the investors who are in for the long term will not be worried about Rs 20 low as long as there will be good liquidity.