Hold ONGC, says PN Vijay

Vijay told CNBC-TV18, "I would expect Oil and Natural Gas Corporation (ONGC) to move up probably beat the market  a little bit and I would suggest that one should relook at the investment at about Rs 350 or so. It should go over that in a  time horizon of about 12 months.”

He further added, “The reason for this optimism of mine is three-fold. One is if they increase the customs duty on  crude, ONGC’s pricing to the oil marketing companies (OMCs) is based on import parity, so that will be a straight  increment to the bottomline. Also, if government sticks to its subsidiary reduction schedule, ONGC’s big outflow on  subsidies would come down and importantly ONGC has made massive investments more than any other company in  India in overseas exploration and I expect many of those oil blocks to come in to fruition in FY14. So all these factors  make ONGC one of the good, safe largecaps in the market and I recommend that one right now holds on and review  around Rs 350 or so."