OMCs rally likely to sustain if there is no government intervention: Dhiraj Sachdev

In a chat with ET Now, Dhiraj Sachdev, Fund Manager-Equity, HSBC AM India, shares his views on the OMCs.

ET Now: You have mentioned PSUs, you are positive on. You mentioned about stocks with strong entry barriers is something that you like. OMCs fall right in that bracket and you also mentioned that they probably have managed that business reasonably well. BP, HP, IOC, they have had a bit of a rally. Do you think this is a start of much better things to come?

Dhiraj Sachdev: That is the expectation. If they are able to gradually increase product prices and there is no government intervention on kind of a break on the increase in product prices be it LPG, Kerosene or on the diesel side and even if there is any kind of rationalisation on the subsidy front this rally on oil marketing companies segment should sustain.