Rally in state-run oil firms overdone: Nomura
MUMBAI (Reuters) - Nomura said the rally in India's state-run oil companies on Friday, spurred by the government's announcement to allow higher diesel prices, was excessive and the action would not lead to any improvement in the bottom line of these companies.
"We reiterate that yesterday's actions are not a big reform, and there may not be much reduction in oil marketing companies' overall under-recoveries," Nomura wrote in a note on Friday.
"Also, even as under-recoveries reduce, these may not result in any improvements in the bottom line of companies, in our view," the analysts added.
Nomura maintained its 'reduce' rating on Oil and Natural Gas Corp (ONGC.NS) and Oil India Ltd (OILI.NS).
Shares of state-run companies surged for a second session on Friday after the government's diesel announcement.
(Reporting by Rafael Nam and Abhishek Vishnoi; Editing by Anand Basu)
- Tweet this
- Share this
- Digg this
- UPDATE 2-U.S. fast-food workers rally for higher minimum wage
- Springsteen's handwritten 'Born to Run' draft fetches $197,000
- South Africa, world mourn 'giant for justice' Nelson Mandela
- UPDATE 4-Child killed in Idaho school bus accident, 4 more hurt
- Delhi's rubble-strewn Connaught Place mirrors Congress' election struggle
South African anti-apartheid hero Nelson Mandela died aged 95 at his Johannesburg home on Thursday after a prolonged lung infection, plunging his nation and the world into mourning for a man hailed by global leaders as a moral giant. Article | Obituary