Chances of oil prices spiking sharply remote: Mehraboon Irani

In a chat with ET NOW, Mehraboon Irani, Principal & Head-Private Client Group Business, Nirmal Bang Securities, says that subsidy in pricing can come down assuming that the oil remains at the same level.

ET Now: Which is the best bet that you are looking at from the oil and gas pack?

Mehraboon Irani: Looking at the way the subsidy issues being panning itself out and continuous hikes in petrol and diesel prices. The subsidy can only come down going ahead assuming oil remains at the same level or remains under pressure but does not spike up sharply. And chances of spiking up sharply are quite remote as of now at least despite what is happening.

ET Now: So the bet is bigger on ONGC, GAIL or oil marketing companies?

Mehraboon Irani: I would say I would prefer BPCL and HPCL along with ONGC but ONGC is going to be the gas pricing issue and as far as the gas pricing issue goes we will have to watch the geopolitical scenario also ultimately what is going to happen over there. But because of the gas pricing my best bet would be Reliance Industries at number one, Oil India at number two, and ONGC at number three.