Relatively neutral on gas space: Harendra Kumar, Elara Capital

In a chat with ET Now, Harendra Kumar, Elara Capital shares his views on oil and gas.

ET Now: What is the call on oil and gas space? Expectations are low, nobody is expecting any big bang reforms, valuations are attractive and under ownership is extremely high.

Harendra Kumar: I do not see that happening in the crude side of the play. Actually the gas side, the Rangarajan Committee where it was trying to set the all gas prices to $8 is interesting piece.

Gas has underperformed the whole of last year and that is where I see some traction moving into this current financial year. So gas would be relatively neutral to weight purely on news flow and the faster recovery that might set in rather than the larger, the oil pact such as Cairn or Reliance. The other aspect I want to add here is that dollar is going to remain strong. So the crude stories are not going to do much per se.