Exposure increased to oil and gas space; look at energy sector more favourably: David Pezarkar

In a chat with ET Now, David Pezarkar, CIO-Equities, BOI AXA Investment Managers Pvt Ltd shares his views on oil and gas space.

ET Now: Which all stocks do you like from the entire PSU pack, especially OMCs?

David Pezarkar: We have been increasing our exposure to the oil and gas space. We have been underweight on the energy space overall, including the power utilities and coal producers. Over the past few months, we have been reducing that underweight.

Investors should look at the energy sector more favourably, while there have been a lot of expectations built in in terms of gas price hike. We still have valuation comfort. Some of the oil PSUs, particularly the upstream sector and coal producers in India, are global scale companies.

They are valued at quite a large discount compared to their global counterparts. This kind of discount is likely to reduce as their efficiencies improve and investors expectations in terms of expecting their operational efficiencies to improve changes.