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India oil - Upstream PSUs - Outlook gets gloomier: Nomura

India Infoline News Service | Mumbai | December 17, 2012 15:14 IST

Even as the three stocks currently trade near their three-year lows, we think the scenario could worsen in 1H13F

“With the Indian government’s (GoI) priority on fiscal deficit control (amid revenue slippages) this year and likely doling out of populist measures in 2013 ahead of the 2014 elections, the outlook remains gloomy for upstream PSUs, in our view,” the report added.


Upstream oil PSUs (ONGC, OIL and GAIL) have sharply underperformed relative to the BSE Sensex; these stocks have declined by 12-15% over the past 3M and 19-28% YTD, says a report by Nomura.


Anil Sharma; Ravi Adukia of Nomura say, “Even as the three stocks currently trade near their three-year lows, we think the scenario could worsen in 1H13F. Macro concerns remain elevated and we believe upstream oil PSUs are vulnerable to higher subsidy sharing.”


“With the Indian government’s (GoI) priority on fiscal deficit control (amid revenue slippages) this year and likely doling out of populist measures in 2013 ahead of the 2014 elections, the outlook remains gloomy for upstream PSUs, in our view,” the report added.


Sighting further downside for upstream PSUs Nomura has recommended reduce on ONGC, OIL.


Read more on: India  oil  Upstream  PSUs  Outlook  gets  gloomier:  Nomura 
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India oil - Upstream PSUs - Outlook gets gloomier: Nomura
India oil - Upstream PSUs - Outlook gets gloomier: Nomura
Even as the three stocks currently trade near their three-year lows, we think the scenario could worsen in 1H13F
http://www.indiainfoline.com/article/news-top-story/india-oil-upstream-psus-outlook-gets-gloomier-nomura-113110708433_1.html
December 17, 2012 15:14 IST
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India oil - Upstream PSUs - Outlook gets gloomier: Nomura
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