OMC stocks a momentum play, may perform well going ahead: Nitin Jain

In a chat with ET Now, Nitin Jain, CEO, Global Asset & Wealth Management, Edelweiss Financial, shares his view on oil marketing companies (OMCs).

ET Now: Of late, we are seeing some strength in the stocks of oil marketing companies. A lot of There has to be some reason why BPCL, HPCL and IOC are trading at their life-time highs or 52-week highs, as the case may be for themselves. What is your approach here?

Nitin Jain: There is a huge opportunity. These OMC stocks have been in a bear market for decades. For the first time, things are starting to turn in their favour.

These stocks can continue to do well. But when you look at big asset allocators, the ones who are looking for allocations over the next 5 to 10 years, their allocations to commodity stocks have obviously declined dramatically. So, these are two different segments where we advice differently. For traders, who are happy to play the momentum, may be with a view of six-month to one-year cycle, these might be good bets.