Sachin Shah, Fund Manager at Emkay Investment Managers told CNBC-TV18, "The way the oil prices have crashed, what we have seen is that in the last one month, we are down almost 20 percent at sub 70 and if you see year-to-date (YTD) we are down by almost good 35 percent. I think it is a big positive for the Indian economy and for the entire oil and gas sector in the country.”
“One of the big things that they were all suffering all this while were from the major subsidy burden and the effects because of those. So, clearly that is going to be now significantly reduced. So, the OMCs have been doing well and the undertone there still remains very buoyant. The business outlook is very healthy out there,” he added.
“As far as ONGC is concerned, there could be some bit of worries in terms of the earnings cut but one needs to also keep into consideration that there will be some rationalisation on subsidy sharing also when the subsidies are itself going to go down so significantly. So, we are quite positive on the entire oil and gas space including ONGC and GAIL India,” he said.
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