Excise duty cut on petrol & diesel a proactive step; HPCL top pick among OMCs: IIFL

The centre has cut excise duty on petrol and diesel by Rs 2 per litre and now CNBC-TV18 learns that states have also been asked to review the value added tax (VAT) on petrol and diesel.

In an interview, Harshvardhan Dole, Vice President-Institutional Equities, IIFL shared his readings and outlook on the same.

The government has taken a very proactive step and in a way they have supported their own reforms agenda in a big way, he said.

We like all the three oil marketing companies (OMCs), Hindustan Petroleum Corporation Ltd (HPCL), Bharat Petroleum Corporation Ltd (BPCL) and Indian Oil Corporation (IOC) and among the three HPCL is our top pick, he added.

We have a buy call on HPCL and the target price is close to Rs 620, said Dole.

For full interview, watch accompanying video...