Acquisition assets will be primary for OMCs going ahead: Gaurang Shah

A quick word on this news- BPCL has entered into a pact with Norwest to buy these assets Shale Gas acreages in Australia?

Gaurang Shah: I think the move going forward for some of these oil exploration and oil marketing companies is going to be acquisition asset whether in domestic or overseas market. As a disclosure we as a broking house has short term call yesterday on BPCL. Amongst all the 3 oil marketing companies our preference is BPCL, then IOC and then HPCL. Well the news is out you will definitely see a news based spikes but even from a longer term perspective I think the government's policy decision as far as oil products are concerned is much more visible.

Yes, one is really looking forward to deregulation of diesel but that will take a while possibly once the inflation eases off then you will see a little bit of more decisive decision been taken on deregulation of diesel prices because directly impact the inflation and nobody wants to tinker with inflation as of now. Having said that, yes, the bump up is there I would use opportunities on correction to buy into BPCL and we would still recommend the stock. I think you will see an appreciation about 10% to 15% from CMP.