CLSA cuts oil stocks, says fuel price rally overdone
Reuters Market Eye - CLSA downgrades Oil and Natural Gas Corp(ONGC.NS) to "underperform" from "outperform". The brokerage also cuts Indian Oil Corp (IOC.NS) and Hindustan Petroleum Corp (HPCL.NS) to "sell" from "underperform".
CLSA says the rally in these state-owned stocks on the back of hopes for a hike in fuel prices is overdone, given any "sweeping" changes to pricing would be hard to implement in a "very busy" political calendar in 2013.
The brokerage adds Indian Oil and HPCL could see higher under-recoveries from a weaker rupee, while ONGC could see the government limit its subsidy burden in 2013.
Stocks later recorvered. IOC ended up 1.18 percent, HPCL gained 1.2 percent, while ONGC rose 4.41 percent.
(Reporting by Abhishek Vishnoi)
- Tweet this
- Share this
- Digg this
- U.S. nurse defies Ebola quarantine with bike ride; negotiations fail
- In his native Alabama, Apple CEO's announcement he is gay prompts discomfort for some
- Islamic State fighters kill 220 Iraqis from tribe that opposed them
- PM Modi boots officials out of the first class cabin
- Govt considers ban on e-cigarettes, sale of single smokes
The BSE Sensex and Nifty on Friday rose to their second consecutive record highs. The 30-share Sensex surged as much as 1.52 percent to an all-time high of 27,762.13. The broader Nifty gained as much as 1.49 percent to a record of 8,291.65. Full Article
China's shadow banking sector growing rapidly, third largest in world - FSB. Full Article