October 6, 2017 / 5:40 AM / a year ago

BUZZ-Tax cuts may provide buffer for India's oil refiners - Credit Suisse

** Credit Suisse says an excise duty reduction on petrol and diesel and a likely cut on VAT will give buffer to oil marketing companies (OMCs) until oil prices hit $65/bbl

** Earlier this week, India’s oil ministry asked for 5 pct decrease in additional state levy, a day after the federal government trimmed factory gate tax on petrol and diesel by 2 rupees/litre

** Brokerage says near-term margins could stay weak as OMCs pass on full tax cut benefit, but will normalise in coming months

** Credit Suisse’s top picks: Indian Oil Corp, and Bharat Petroleum Corp - both rated “outperform” and PTs at 485 rupees and 540 rupees, respectively

** BSE oil index has gained 25 pct so far in the year up to Thursday’s close; IOC up 16 pct, BPCL up 25 pct in same period

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