April 12, 2018 / 4:32 AM / 2 months ago

BUZZ-Indian OMCs tumble on rising oil prices

** Shares of Indian oil marketing companies continue to be under selling pressure as oil prices hover near 2014-highs

** Oil markets remain tense on concerns over a military escalation in Syria with Brent crude futures at $72.25 per barrel at 0250 GMT, up 19 cents, or 0.3 percent from their last close

** Hindustan Petroleum Corp Ltd falls as much as 3.4 pct, on track to post losses for a third straight session

** Bharat Petroleum Corp Ltd drops as much as 3.5 pct to 402.4 rupees, its lowest since June 2017

** Shares of Indian Oil Corp Ltd fall nearly 5 pct to 159 rupees to hit their lowest since Dec 2016

** OMC earnings still appear uncertain as subsidy risks mount in the face of rising crude and inadequate subsidy provisions in the budget - Jefferies

** Jefferies adds “still prefer the cheaper and more resilient” Indian Oil Corp to HPCL or BPCL

** See real risk that even OMCs will be asked to take a portion of the subsidy burden if the govt does not take the full burden - CLSA

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