Will bet on ONGC despite subsidy sharing problem with the government: Mehraboon Irani

In a chat with ET Now, Mehraboon Irani, Nirmal Bang Securities, shares his view on the PSUs.

ET Now: Which is your favourite PSU stock currently. Everyone is chasing PSU stocks and PSUs is a large group. What are you betting on?

Mehraboon Irani: If I have to bet on something at this price I would go to ONGC. This is a stock which has a long way to go despite the problems with the subsidy sharing problems with the government. You do not know what will happen and ultimately government needs money. They are not going to allow the PSUs to make money so easily. But this is the place where the action is going to be and therefore I am pecking ONGC in this particular pack.

Possibly Coal India could be a dark horse. If you understand the proposal which is right now in place, it is not going to happen in a hurry ultimately that domestic price will be linked to international price the way it is happening in the case of oil. So Coal India not in a hurry but ONGC could be the stock as far as defence sector goes and the PSU names goes I personally feel that it is not much of money now to be made from the present level despite the fact whatever government does with the FDI limit in defence. Investors according to me are being conned at the present level as far as defence stock goes.