Market is due to see short covering, which can precede with value buying coming in is the word coming in from market expect SP Tulsian of sptulsian.com.

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Tulsian is a well-known fundamental analyst with more than three decades of experience, He has an acute sense of logic and is respected for his frank and forthright views.

With regards to pharma stocks and particularly gains seen in IOL Chemical, he said it could be windfall gains because of profits that they are making on Ibuprofen but this may not be sustainable. So, it is a matter of taking a call whether you want to ride the momentum or play safe

“We pray that coronavirus situation cools down and that gives solace to the entire world," he said in an interview with CNBC-TV18

When asked about city gas distribution stocks, he mentioned, “One should not be too comfortable on these stocks; it’s better to remain away. It’s better to look to exit from these stocks because they are already ruling at a very elevated levels of around 52 week highs, which we have seen about 10 days back as well.”

On telecom sector Tulsian said, market is considering a duopoly with existence of only Bharti Airtel and Reliance Jio but that may not be the case because Vodafone-Idea may not defy Supreme Court order . “I am confident that Vodafone-Idea will make payment to the extent of Rs 15,000-20,000 crore and probably that will give respite to all the players that’s is banking stocks or infra service provider like Bharti Infratel because if Vodafone-Idea doesn’t exist, the tenancy ratio of Bharti Infratel will fall and that will be seen quite negative for Bharti to see the margins decrease and one major customer seen going away,” said Tulsian.

First Published:Feb 18, 2020 4:17 PM IST