S Naren, CIO Equity, ICICI Prudential feels that oil & gas is the best sector to invest in if you believe that crude will go up to 90- 80.
Naren told CNBC TV18, "Our view on oil & gas is very simple. I think the month of 45 days back upstream oil is very attractive to us and we had a good overweight position in upstream oil. Even today upstream oil on a valuation basis looks very comfortable except that there are some following offers on the way. As far as downstream oil is concerned, we are finding it a very difficult sector to be investor in."
He further added, "Oil & gas is the best sector to invest in if you believe that crude will go up to 90- 80 or something like that because it is a sector which will deliver extremely good returns as crude falls. So it's a complicated sector over a long period of time. I would say it has been a value trap and it's not an investment industry because the regulations are over powering and there is no way any analyst can actually value the EPS at correctly because he has to make a lot of assumptions not only on oil prices but its own regulation. So I think we had stuck to upstream oil and that experience has been good."
