In an interview with CNBC-TV18, C Jayaram, Kotak Mahindra Bank said that if Reliance Power lists somewhere at Rs 600 and below, then many of those leverage positions are going to lose money and that could be negative. On the flip side, if it lists well above that could be a positive trigger for the market.

Excerpts from CNBC-TV18's exclusive interview with C Jayaram:

Q: The countdown has begun for a very big listing. What's your sense of how sentiment is towards a space like power and now what might happen to something as big as Reliance Power, just by way of interest?
 
A: I think the mood is not entirely positive because there are a lot of investors who have borrowed money and are pretty much leveraged in terms of their applications and the sense at this point of time is that many of them would be lucky to get away with a break-even situation. So the mood is not entirely bright right now. In a sense, that could be next major cue for the market because if it lists somewhere at Rs 600 and below, then many of those leverage positions are going to lose money and that could be negative. On the flip side, if it lists well above that could be a positive trigger for the market.

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Source : MoneyControl