Prospect good for oil marketing cos: Ketan Kharkhanis

Ketan Kharkhanis, Head of Active Trader Service in an interview with ET Now talks about oil marketing companies.

The oil marketing companies, I was looking at say may be a BPCL which is down 4% today, lot of other oil companies as well the likes of an Essar Oil which is down 3.5% today. How are the positions looking can we see more downside especially on BPCL?

I think BPCL, all the OMCs have performed well over the last 10 days on back of news that probably some recommendations of Kirit Parikh Committee would be enforced but since the same has been now postponed again I think the stock doesn’t appear really to be into any major downtrend from here. So I think if we have to take any contrarian bet on that probably the downside is largely factored into this particular stocks. So any further downsides are not likely but in case only partial recommendations are implemented probably only on the front of fuel prices and not on the cooking gas side so probably the beneficiaries would be more on the private side probably Essar Oil or Reliance would be I think a better beneficiary than any of those OMCs in that case.