Exit IOC on upside: Sharmila Joshi

Exit IOC on upside, says Sharmila Joshi, Head of Equities, Fairwealth Securities.

Joshi told CNBC-TV18, “I think market was expecting some kind of a diesel price hike and while maybe not today, maybe a couple of days from now I think the time is right to take such a move largely because I think then it kind of make sense of the whole price hike in petrol by such a steep Rs 7.5 amount, because I think these under-recoveries has been a burning issue for all the oil marketing companies for the longest time and with the currency depreciating it really wasn’t helping matters much.”
She further added, “We have heard them all say their piece last week when they really explained how dire the situation was for them and how in just the first couple of months of year things looked bad for them. IOC numbers are today. I would think that diesel prices not being increased will be taken little negatively by the market. But let’s wait for the IOC numbers.”
“In any case I think this is not a price to sell, simply because we have just seen the price hike for petrol coming through, so I would expect a little bit more of a positive sentiment of that perhaps carry through if the numbers were also a little better. So let’s just wait out for the numbers and then take a call.”
“I think Rs 303 will take time to happen. If one has the patience he/she can stay put, but otherwise I would say that if you were to see a bit of a bump up from the current price of 4-5% then I think you should look to exit.”