Reliance could be a safe buy, says PN Vijay

PN Vijay, Portfolio Manager said he would rate oil & gas as the best sector in the economy right now. According to him, Reliance could be a safe buy.

Vijay told CNBC-TV18, “Reliance Industries will report fairly earnings because the petro chemical margins and the refining margins would be fairly firm. The oil production has been coming down though it is possible that Reliance is holding back from production in anticipation of a price rise from the government from the low levels they have right now. So Reliance should be okay and oil and energy as a sector itself is very good. I would rate it as the best sector in the economy right now. Reliance could be a safe buy.”
“The oil marketing companies are better bets right now for a strong up move as compared to Reliance. On the whole, I am not too worried about the earning season. This is because the Indian index for the first time in its history lowers price earnings to the MSCI. So, we are really lower than the MSCI which means that India has severely underperformed and also the earnings downtrend has been more than factored in by the market. I am not too worried about sluggishness in the earnings because it is built into the price. As far as Reliance is concerned the news will be fairly cheerful,” Vijay added.