Buy OMCs on declines; avoid NTPC: Neeraj Deewan

In a chat with ET Now, Neeraj Deewan, Director, Quantum Securities, shares his view on oil marketing companies ( OMCs) and NTPC.

ET Now: Rating agency Moody’s has revised its outlook for BPCL, NTPC and IOC. Would you be looking at these names favourably?

Neeraj Deewan: We continue to remain positive on oil marketing companies (OMCs).

One can consider these OMCs on declines. But, as far as NTPC is concerned, I do not have much confidence in the company.

The company has really not done anything for the last so many years. Many a time, we felt that the NTPC stock is cheap in valuations, but we ended up with empty hands, no return.

I would like to see some movement happening in the stock. I would rather pay for a little more price for NTPC than buying it at present. I would wait, until I get more clarity. But for OMCs, I would definitely 'buy on dips'.