CLSA cuts oil stocks, says fuel price rally overdone
Reuters Market Eye - CLSA downgrades ONGC to "underperform" from "outperform". The brokerage also cuts IOC and HPCL 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.
IOC is down 0.3 percent, HPCL is down 0.6 percent, while ONGC is up 2.6 percent.
(Reporting by Abhishek Vishnoi)
- Tweet this
- Share this
- Digg this
- UPDATE 5-Hezbollah says commander killed in Beirut, blames Israel
- Delhi's rubble-strewn Connaught Place mirrors Congress' election struggle
- Exit polls see gains for BJP in state elections
- UPDATE 5-Biden calls for trust with China amid airspace dispute
- U.S. court questions Google defense against Oracle over Android
The Hindu nationalist opposition Bharatiya Janata Party (BJP) emerged as the biggest winner in four key state elections, exit polls forecast on Wednesday, a possible blow to the ruling Congress ahead of a general election due next year. Full Article