Buy into OMCs: Amit Goel

Amit Goel, Director, PACE Stock Broking Services in an interview with ET Now talks about OMCs.

OMCs given where crude is in the trend expected there perhaps some brokerages would take a cautious call on OMCs?

Right. We actually have a long term positive call, long term buy call on the OMCs. The reason that I think we are moving in the right direction as far as government policy is concerned and as we go into ONGC FPO I think government would have to come out with some sort of a clarity on how the subsidy burden is going to be shared in future and in any case we are gradually moving towards price decontrol.

While I agree that crude oil is a matter of concern but considering that crude oil has already run up quite a lot and we do not see a substantial upside in crude oil in the next few months I think given that the government policy direction is positive and given that ONGC FPO is approaching we have a buy call on OMCs at least for the next 6 months horizon.