Not bullish on Reliance, ONGC top beneficiary from oil and gas space: Gautam Chhaochharia

In an interview with ET Now, Gautam Chhaochharia, Head-India Research, UBS, shares his views on the oil and gas space.

ET Now: What makes you bullish on Reliance and ONGC from the oil and gas space?

Gautam Chhaochharia: For different reasons we are not only bullish on Reliance just because of the gas price hike, but we are also positive on the rest of the business contributing positively over the next two-three years, which is completely being ignored in the current stock price and we do not really worry so much about the Election Commission thing.

It is a short-term deterrent for sure, but we do not see a big risk of it really leading to the gas aspect not happening post-elections because the fundamental reason behind the gas price hike of encouraging gas exploration activity still remains.

In ONGC it is more the overall production volume increase. Apart from that, there is the broad approach of the government to reduce subsidies with continued diesel price hike. So that’s top beneficiary from that in our view.