ONGC a definite 'hold': Siddharth Sedani

ET Now spoke to Siddharth Sedani, Sr Manager (Portfolio Management Services), Microsec Capital Ltd, on his stock recommendations.

ET Now: What would you do with ONGC?

Siddharth Sedani: Definitely, ONGC is a hold because of there are a lot of structural reforms which have happened in recent weeks. So ONGC has been benefited due to the cash subsidies and all that and the second flipside if you see, the holding of big funds in private upstream companies is much much higher than the downstream PSU companies.

So stock accumulation would also happen through the funds to increase the weightage into their funds and this looks very promising because of ONGC is right on the edge of discovering the oil wells. So looking at the valuations also around 10.6 times FY12 earnings, stock looks very promising and on top of it, reforms will take really a major role in this company.