Prakash Diwan`s view on ONGC

Prakash Diwan, Head - Institutional Clients Group, Asit C Mehta shares his view on ONGC.

Diwan told CNBC-TV18, “It is been after a long time that we have seen some sort of a price action come through in ONGC. It’s been sideways for quite sometime. What’s going to more realistically reasonably right for the stock to rally further beyond this is how things pan out on other subsidies that we are talking about.”
He further added, “We need to look at the subsidy burden as a composite issue and then petrol prices would not just be the be all and end all of this major problem. So I would wait to see that before taking a very major call. But it does seem that the government seems to be kind of taking right steps to address this long pending issue. Definitely ONGC could probably gain a lot of lost ground that it has suffered because of the government’s action. So in the medium and short-term, yes it could be a positive but we will wait to see how things pan out for a major larger call to happen.”