Accumulate OMC stocks: Baliga

One can accumulate oil marketing companies (OMCs) stocks, says Ambareesh Baliga, Independent Analyst.

Baliga told CNBC-TV18, "In OMCs after that initial euphoria post the game changer announcement by the government, we saw 30 percent move. It was quite natural that after that we should see some correction and I was saying that time we should see a correction of about 8-10 percent from those higher levels. That is exactly what has happened.”
He further added, "Surely, people should look at buying it because if you are looking at beyond next 12-15 months when subsidy will be completely out of the way, I think that is when you will find the fundamental value for most of these oil marketing companies (OMCs). So I think this should be a good start for accumulating but may not see immediate upmove because everyone knows that every month you will have some hike or the other. That is already discounted but then surely, you will have serious investors who were ignoring these stocks earlier will come and start buying."