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
- TCS net profit rises 51.5 percent, sees stronger sales growth
- Hundreds of earthquakes strike central Idaho, rattling nerves
- Ocean floor search for missing Malaysia plane cut short again
- Search resumes for hundreds missing in S. Korean ferry disaster
- Syria says vehicles hit by Jordanian Air Force are not Syrian Army
Prime ministerial frontrunner Narendra Modi said he was committed to a policy of no first use of nuclear weapons, seeking to assuage concern after his Hindu nationalist BJP party vowed to revise the nuclear doctrine if elected to power. Full Article