The sentiment has improved in the oil and gas sector: Seshadri Bharathan

ET Now caught up with Seshadri Bharathan, Investment Analyst to get his views on oil and gas stocks.

Are you looking at the oil and gas space in a renewed manner right now given the expectation of gas prices going up the expectation of petrol prices getting a bit of a boost and also the fact that crude has picked up it is at $74 a barrel?

Crude prices going up is a music to their ears, as far as the upstream company goes. As for the OMCs there are reports that government might implement Kirit Parikh Committee report of increasing petrol prices by Rs.3 per litre and diesel prices by Rs.2 per litre. Overall the sentiment has improved in the oil and gas sector. Even the gas pipeline companies like GAIL, GSPL are in news because international gas prices have gone up by 7% last year.

Would you buy these stocks right now and if so which are the ones that you would look?

Cairn would be one of the stock picks and in the OMC, BPCL would be one of the stock picks.

What is your target on both the stocks?

Cairn would be around Rs.270 to Rs.280 and in BPCL as a 5% upside.