Interesting to see where ONGC heads in the short-medium term: Gopinath Natarajan

Gopinath Natarajan, EVP, IIFL PReMIA in an interview with ET Now talks about ONGC.

Not just SBI but ONGC as well broke down yesterday on heavy volumes and post that the government has increased its subsidy burden. Do you think was selling overdone yesterday?

Well I guess there was a news that subsidy burden is going to be increased on ONGC. Even though at this point of time nothing has been confirmed. I guess if that were to happen we see an impact on the EPS of close to about Rs 2 to Rs 2.5. If that were to happen hypothetically speaking.

So that is something which I think kind of bothers the market. It will be interesting to see where ONGC goes at least in the short to medium term especially with crude still hovering at around $110-$115 and there are definitely headwinds coming in terms of sticky and high crude oil prices, I think they will continue also for sometime.