Bearish on ONGC: Ajay Srivastava

In a chat with ET Now, Ajay Srivastava, Dimensions Consulting Pvt. Ltd. shares his views about RBI rate cuts.

Will incremental cess hurt ONGC, Oil India and Cairn that badly for the market to actually rerate these names?

I am very disappointed because just before buying up ONGC stock, you have a huge cess being landed up there. So it is a very clear negative for the stock and it will go down further. It has got to rerated down, very quite drastically not only because the fundamental will change quite drastically with the new cess and the cash outflow but again we are back to the same point that these are not really commercial companies.

So rerating is one issue but again retail public has started nibbling into the oil stocks. Get out of the stock because one does not know the profit is so rerating. Buying is definitely no, it is a sell out at this time if you are holding it.