Exit Reliance Power, says Sharmila Joshi

Sharmila Joshi of sharmilajoshi.com told CNBC-TV18, "What you really need to realise is when the Reliance initial public offer (IPO) came, there was a huge, power stocks were absolutely the flavour of the season at that point. You had power issues hitting you left, right and centre and so many IPOs came at that point in time. And now, we are at the opposite end of the cycle where we are really seeing the sector going through a lot of issues. If there was one, you could name them. And the latest has been this ruling that came today but of course, it does not really affect Reliance Power."

"You have to juxtapose this sector against what is really happening outside where you are seeing a runaway rally in a lot of midcaps. So, just because of that, you would be well served to just exit the stock, and buy some other sector which is doing well or which is expected to do well. Even if you were to buy some beaten down infrastructure name, you would do better than staying put in any power stocks, simply because if you were to see that recovery coming in, if that capital expenditure cycle recovers as we have been hearing, then you will actually see a lot of capital goods stocks move past."

"Or go with the sage sectors which everybody is buying now. People are buying consumption, people are buying all kinds of other stories other than power. So, I would really recommend an exit largely because I think you would be in such a market where everything around you is rallying."

"In a capital goods space, one could look at a stock like Larsen and Toubro or Bharat Heavy Electricals, the larger capital goods plays or something in the white goods consumption play, those are also doing well whether it is Voltas, whether it is Blue Star. There is a better chance of making money outside power," she added.