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
India has capped the prices of 36 drugs, including those used to treat infections and diabetes, in its latest move to make essential medicines more affordable, a senior official of the country's drug pricing authority told Reuters on Friday. Full Article
Top rice exporter India importing over 100,000 T on temporary supply squeeze. Full Article