Enter Coal India, NTPC: Roy

Gautam Sinha Roy of Motilal Oswal advises to enter in Coal India and NTPC at current levels.

Roy told CNBC-TV18, “We are continuing to be more cautious on the defensive side. We are still waiting for the global cues as well as the domestic cues to be turning positive. From a longer term investment perspective there is value. We are seeing value in specific spaces.”
He further added, “The PSU space is one space that comes to my mind because of this whole issue about Offer For Sale (OFS) and the resultant supply of paper from the PSU companies. A lot of them are beaten down. Coal India, National Thermal Power Corporation (NTPC), Engineers India in the midcap space. There are stocks which offer good 3 percent plus dividend yield too. So for long-term investors definitely these are very good companies to enter into right now, but for dearer term investors with a lower horizon of months-two months maybe it is only right to be continue to be cautious and stick to defensive names, more so the ones with export oriented businesses like IT and pharma, so for different set of investors, different kind of recommendations essentially, but we continue to be cautious from a near-term perspective.”