Positive on HOEC, GAIL, Selan Exploration: Gaurang Shah
I think oil exploration companies like Selan Exploration, Hindustan Oil Exploration, GAIL definitely has given you a good momentum above 490 so you could see a momentum build up over there.
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| Gaurang Shah, Asst VP, Geojit BNP Paribas Financial Services, in a chat with ET Now talks about oil & gas stocks.
Your assessment on the oil and gas space and the weakness that we saw in BPCL, ONGC, Cairn in yesterday session?
The sooner the government decides on the deregulation of diesel, it is going to be much better but yes it is good thing that petrol was decontrolled and the free pricing was allowed but if you see on the other side, the consumption of diesel is by and large on a very very large scale.
On the other side, you have seen the crude oil prices maintaining about $80-$82 a barrel in the international market in dollar terms and I think that could see a significant uptick if you see the crude oil prices trading beyond $85 a barrel for a couple of days then definitely it has got much more strength.
Now what does that directly translates into is yes petrol does get free pricing but diesel is what something negative is all about. I think oil exploration companies, which compliment exploration in oil and gas companies like Selan Exploration, Hindustan Oil Exploration, GAIL definitely has given you a good momentum above 490 so you could see a momentum build up over there.
Price target of about 560 to 580 could not be ruled out with a reasonable amount of time frame but I would not touch the oil marketing companies at current levels. I think on dips one can but the great area or an overhang over there is the deregulation decision on diesel by the government.
Your assessment on the oil and gas space and the weakness that we saw in BPCL, ONGC, Cairn in yesterday session?
The sooner the government decides on the deregulation of diesel, it is going to be much better but yes it is good thing that petrol was decontrolled and the free pricing was allowed but if you see on the other side, the consumption of diesel is by and large on a very very large scale.
On the other side, you have seen the crude oil prices maintaining about $80-$82 a barrel in the international market in dollar terms and I think that could see a significant uptick if you see the crude oil prices trading beyond $85 a barrel for a couple of days then definitely it has got much more strength.
Now what does that directly translates into is yes petrol does get free pricing but diesel is what something negative is all about. I think oil exploration companies, which compliment exploration in oil and gas companies like Selan Exploration, Hindustan Oil Exploration, GAIL definitely has given you a good momentum above 490 so you could see a momentum build up over there.
Price target of about 560 to 580 could not be ruled out with a reasonable amount of time frame but I would not touch the oil marketing companies at current levels. I think on dips one can but the great area or an overhang over there is the deregulation decision on diesel by the government.
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