Bullish on OMCs post plam oil price rise : Right Horizons

Could some of these FMCG counters be affected by the rise in palm oil prices?

Anil Rego: Definitely. The FMCG companies which have oil as a significant part would be impacted there but some of the majors we are not seeing too much of composition as part of it portfolio there and I would believe that they would still have a bit of their mark up margin and the cost would get passed on to the consumer there. So I do not see any real significant impact there. Definitely for companies which are let say like a Ruchi Soya there could be some positives out there.

What is your call on the FMCG lot, do you like it?

Anil Rego: Sure it is as a long term bet as a defensive definitely the FMCG is a play there, however, we need to expect may be a 15% gain type of stock over may be a period of 6 months to a year. So one should not be playing it for momentum but yes we like ITC in fact HUL as well is definitely looking good again and one could consider FMCG stocks in your portfolio.

What about these oil exploration companies suddenly we were seeing in batches and specific pockets you suddenly see a lot of buying activity coming about right now it is HOEC that suddenly perked up in trade 10% higher right now, Shivani Oil and Essar Oil what is the call there?

Anil Rego: Oil prices being at a high end. A pretty bullish outlook there one would expect some of these to pop up and see some good gains of course some of the larger sets have their own issues in terms of the subsidies and stuff so I think traders and investors are looking what is the other set which are not necessarily going to be a part of the subsidy burden there so definitely oil exploration stocks would be buzzing around for sometime.