Stay invested in REC: Thununguntla

Jagannadham Thununguntla, Strategist & Head of Research, SMC Global Securities Limited one should stay invested in Rural Electrification Corporation (REC).

Thununguntla told CNBC-TV18, “One should stay invested in Rural Electrification Corporation (REC). From the same segment even Power Finance Corporation (PFC) is appearing to be a decent bet. It makes sense to hold on. The likelihood of Punjab and some banks pulling out of the SEB bailout is one fear and other point is that whether that will have a spillover effect on other states and how far others will react, because that probably will set the tone for the revival of the whole sector. I think that is a very key development and need to be seen whether that will restrict only to Punjab or will spillover to other regions.”