Buy HPCL, BPCL on dips: Prakash Diwan

Prakash Diwan, Head, Institutional Business, Networth Stock Broking in an interview with ET Now talks about HPCL and BPCL.

Would you buy BPCL at 675 or an HPCL at 500?

While the long-term outlook for the entire pack is positive as I have been repeating quite often, it would definitely give you value in terms of some sort of easing out of the price movement and invariably we have seen if the run-up happens, there is some supply that comes in, the absorption brings it down.

It is not a one way run-up, which you go to miss out on, so I would want to buy this at dips and not necessarily get into it even at these levels. Distinctly they are news driven, there are lots of policy changes that could still be in the offing and till there is this clarity in terms of the subsidy burden being shared between different parts of the governance. These stocks will continue to react both sides but be in that upward movement, so I would wait and buy into BPCL, HPCL, may be very distinctly on dips.