Govt policies to impact ONGC performance: Gaurav Doshi
At 260-270, we may see fundamental value but the problem is the hangover of ad hoc policy by the government, that’s going to impact sentiment and that’s going to have a bigger impact on how the stock performs over the next 2-3 months.
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| In a chat with ET Now, Gaurav Doshi, VP Equity Specialist, Morgan Stanley PWM, talks about ONGC.
ET Now: Is ONGC a good stock to buy because one is getting a sense that closer to 260-270, the stock is again getting a lot of fundamental support?
Gaurav Doshi: At 260-270, we may see fundamental value but the problem is the hangover of ad hoc policy by the government, that’s going to impact sentiment and that’s going to have a bigger impact on how the stock performs over the next 2-3 months rather than the fundamental valuation. Even stocks like HP, BP, we always tend to see value but I guess sentiment gets the upper hand and especially when we are at these levels in the market and when you have a lot of other sectors and stocks, which are equally fundamentally attractive. I would think ONGC would come lower down my preferred list. I would rather buy a sector or stock, which has less scepticism in terms of policy that could potentially impact it.
ET Now: So by that logic, would it be a complete no-no for the entire oil and gas space?
Gaurav Doshi: I just think that oil and gas definitely warrant some amount of exposure in ones portfolio but oil and gas is a sector that genuine long-term investors should be buying into. Traders will get a lot of whiplashes based on news flow, and I do not think that that’s really going to work out well, so yes, definitely oil and gas even though, we would see a lot of value in it. I guess government policies are definitely going to keep that value subdued.
ET Now: Is ONGC a good stock to buy because one is getting a sense that closer to 260-270, the stock is again getting a lot of fundamental support?
Gaurav Doshi: At 260-270, we may see fundamental value but the problem is the hangover of ad hoc policy by the government, that’s going to impact sentiment and that’s going to have a bigger impact on how the stock performs over the next 2-3 months rather than the fundamental valuation. Even stocks like HP, BP, we always tend to see value but I guess sentiment gets the upper hand and especially when we are at these levels in the market and when you have a lot of other sectors and stocks, which are equally fundamentally attractive. I would think ONGC would come lower down my preferred list. I would rather buy a sector or stock, which has less scepticism in terms of policy that could potentially impact it.
ET Now: So by that logic, would it be a complete no-no for the entire oil and gas space?
Gaurav Doshi: I just think that oil and gas definitely warrant some amount of exposure in ones portfolio but oil and gas is a sector that genuine long-term investors should be buying into. Traders will get a lot of whiplashes based on news flow, and I do not think that that’s really going to work out well, so yes, definitely oil and gas even though, we would see a lot of value in it. I guess government policies are definitely going to keep that value subdued.
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