Find out: Do Sesa Goa, Sterlite offer value post results?

Phani Sekhar, fund manager from Angel Broking, in an interview with Latha Venkatesh and Sonia Shenoy spoke about the trading strategy for stocks.

Below is the verbatim transcript of his comments. Also watch the accompanying videos. On Sesa Goa A: I would advise the investor to sell on a rally. For the simple reason that the results, I would say, were broadly in line irrespective of the fact that they added about 50 million tonne to their reserves. Although you are likely to see an increase in their production owing to the Supreme Court (SC) relief that has come to them. But, more important issue in the next 12-18 months is what happens to the Cairn buy because they went ahead and acquired stake from Petronas at Rs 330 despite the fact that there is a regulatory issue of royalty as far as Cairn is concerned. If that were to be adverse to Cairn then there can be an impact of about Rs 60 on the stock price of Cairn. Considering the fact that the company has made its stake buy at Rs 320 and Rs 330 ballpark in that range, you can see a sharp decline in Sesa Goa