ONGC a good long term play: G Chokkalingam

In a chat with ET Now, G Chokkalingam, Executive Director & Chief Investment Officer, Centrum Wealth Management shares his view on ONGC:

ET Now: What did you make of the ONGC Videocon deal, ONGC is rallying close to 4-4.5% odd and Videocon is down 5% in a trade?

G Chokkalingam: ONGC is a great long term play. Videocon the problem is that they never rewarded the shareholders and despite the top line growing year after year for last 5-10 years that is not reflected in terms of the bottom line or in terms of the reward to the shareholder. On the contrary ONGC is a great long term play because last three-four years they have been consistently buying oil assets outside the country and since we are perennially deficit in oil this asset should help ONGC and secondly we also expect moderation of oil prices starting from the fag end of this calendar year because reportedly the US import of oil has come down substantially.