Reliance Industries continues to underperform: Irani

Reliance Industries may continue to underperform, says Mehraboon Irani, Principal and Head - Pvt Client Group Business, Nirmal Bang.

Irani told CNBC-TV18, “Reliance Industries, we will remain underweight for some more time to come. I think a lot of clarity on a whole number of issues is needed. I think it is nice to see that at Rs 680 what will be the downside but what is the upside also.”
He further added, “I don’t see too much of upside in the short run. I think Reliance should continue to underperform and like you rightly said if we take away the Reliance, the SBI, the DLF and even L&T I think which have been major losers since the high of January 2008. I think honestly there is nothing much to complain about because as per whatever I saw nearly 55% of the Sensex stocks today are ruling much higher than what they were in January 2008 but if you look at Reliance I think possibly a price of around Rs 1600 cum ex-bonus is today around Rs 680, such a large loss of market capitalization for a stock like Reliance which has been everybody’s favorite and I think virtually every second investor is today asking is it the time come for us to add on to Reliance to average down our cost. The factors even I had felt couple of quarters ago that okay there is nothing much lose in Reliance but honestly there are not too many triggers at least in the very short term. So Reliance could continue to underperform for some more time to come.”