HPCL, BPCL, IOC good for long term play: Bonanza Portfolio

In a chat with ET Now, RL Narayanan, Vice President-Equity & Institutional Sales, Bonanza Portfolio, shares his views on the outlook of oil marketing stocks.

Would you venture into HPCL, BPCL or IOC?

Yes. In terms of asset valuations, this is clearly a cheap area; however, this is to be seen more as a defensive part of the market to our mind mainly because if dollar weakens or market usually starts to get help but at the same time, if dollar weakens, the crude again starts to move up and if crude moves up, then these companies would probably tend to underperform a bit and vice versa. So, this is a part of the market, which has got some amount of defensive characteristics but because the policy is still not very clear, it is best seen as a very long term play in terms of asset valuations.