PFC, REC may slip 4-5%, says SP Tulsian

PFC and REC may slip 4-5%, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, “Power stocks, I don’t think that much damage is warranted but if you have these kind of newsflows coming in because you want some respite or maybe halt on the negative like we have seen today for the Indonesian power grid coal supply, the negative news coming in. So, unless and until we see the stoppage of that happening and maybe some reversal, maybe the mind of the Punjab government changes for discom then that maybe seen as a good positive for the whole sector that is the dedicated power finance companies and the PSU stocks. However, from hereon I don’t think that much of the weakness is seen.”
He further added, “I have been keeping my bullish view on the Bank Nifty for whole of this series but the way it has corrected today and yesterday also, we have seen a mild correction. So, probably the correction has happened in all these stocks and further weakness of maybe about 2-3 percent on the Bank Nifty and banking stocks, maybe 4-5 percent on the Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) is seen. Beyond that I am not seeing the weakness to happen.”