Avoid OMCs for the time being: Prasun Gajri, HDFC Standard Life Insurance Company

Prasun Gajri, CIO, HDFC Standard Life Insurance Company, in a chat with ET Now talks about oil marketing companies.

What is your outlook on HPCL, BPCL and IOC?

By and large yes, this sector remains mired in too much of issues and does not look likely that any of these issues are going to get resolved in any hurry.

So one would typically avoid these names for the time being and the sector for the time being. It is going to be very difficult - given the jump in the crude - to tell what kind of subsidy really gets passed on to the entire sector, who shares what, what share the government really takes. This is still not really kind signed in any contract at the moment.

It is pretty much a comment here and there. So one would really want to avoid where the regulatory uncertainty is too high especially in an environment where you really do not know what and where the crude is really headed for. So one would really be wary of for this sector at the moment.