Oil mkting cos may become darling of mkt again: Vijay

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Oil mkting cos may become darling of mkt again: Vijay

Portfolio Manager, PN Vijay believes that oil marketing companies like IOC, HPCL and BPCL may become darling of market again, which used to be in 90s.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See previous views by PN Vijay See what other Experts & Brokerages are saying about BPCL See messages about BPCL Nifty BSE | NSE 30/05/12 Are Mutual Funds betting on Nifty? Other Stocks in this news Hindustan Petroleum Corporation | Indian Oil Corporation |

Portfolio Manager, PN Vijay believes that oil marketing companies like IOC , HPCL and BPCL may become darling of market again, which used to be in 90s.

Vijay told CNBC-TV18, "We are really thinking of betting on public sector undertaking (PSU) oil & gas companies because if you look at these oil marketing companies (OMCs), they are excellent assets. The type of franchise they have with the type of barriers to entry that is there on putting up a distribution system, which IOC, BPCL or HPCL has, you cannot replicate it. It's not mobile telephones where you just put some tower and you are in business; you have to lay pipelines and you have to have refineries close by and also you need tankers."

He also added, "So it's a huge network. And because of these pricing they have just been there for the last five years doing nothing except some trading activity. So possibly this was one sector which used to be a darling of the market since the 90s, which may get back. A lot depends on the next ten days and how quickly the cabinet takes that up etc. But we are actually this morning going to be relooking at all these three companies.