The oil and gas space will remain unchanged: Deven Choksey

Deven Choksey, MD, KR Choksey Securities in a chat with ET talks about the oil and gas space post the hike in petrol prices.

What do you think of the oil and gas space after a hike in the petrol prices?

I do not think that anything has changed honestly. It would remain as it is by and large.

Margins would definitely go down, I mean import duty on crude goes up.

For OMCs, I agree with you. It would go down to a greater extent but beyond that OMCs in any case, market was not bullish. Particularly, market was expecting that if Kirit Parekh Committee Report gets implemented, then probably some amount of upside can been seen in OMCs but otherwise the market was not expecting great out of the OMCs.

Looking at the upstream companies, the things have not changed. Probably things have been looking better, not from the budget point of view but also from the point of view of their organic growth in the business for example for companies like Reliance. With the gas production which is happening and going forward in this particular financial year 2010-2011 they are going to ramp up significantly. So we would remain bullish on upstream companies like Reliance going forward.