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%, HPCL is down 0.6%, while ONGC is up 2.6%.
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