Crude prices coming down will play in favour of ONGC in the long run: Vinay Khattar

In a chat with ET Now, Vinay Khattar, Head Research (Individual Clients), Edelweiss Financial Services Limited, shares his views on ONGC. Edited Excerpts:

ET Now: Why is ONGC down? The crude prices are down. Subsidies burden for ONGC should come down.

Vinay Khattar: I am not in a position to comment specifically on why ONGC would be down. Probably there is a lot of more selling happening in that one as compared to other oil marketing companies. You are right that in terms of subsidy burden, ONGC would be one of the beneficiaries. The only thing that one may want to look at is below a certain if the price keeps on coming below what ONGC is getting, then in that particular case the benefits to ONGC would remain curtail. The subsidy burden coming down would be a positive for ONGC and eventually that should play in its favour.