Stake sale by ONGC, govt key overhangs for IOC

While these will weigh on the stock price, it could be a good entry point for long-term investors

The share price of Indian Oil Corporation (IOC), after scaling highs of Rs 450.65 on May 16, has continued moving down. Trading at Rs 368, it is down 18 per cent from the peak.

This is despite positive developments on the business front, including implementation of daily fuel pricing that benefits oil marketing companies (OMCs) like IOC. Even crude oil prices have continued to remain soft, another positive, though some disappointment did come with oil products being kept out of the goods and services tax (GST) ambit.

The bigger concern, however, has been on the merger of OMCs with upstream (exploration and