Reuters Market Eye - CLSA upgrades Oil and Natural Gas Corporation Ltd to "buy" from "outperform", citing prospect of a 20 percent upside to its share prices on positive factors such as the continuing hikes in monthly diesel prices and the recent doubling of gas prices.
But the brokerage adds the government's promise to limit the burden of its recent gas price hike has forced investors to worry on the possibility of higher subsidy burden for upstream companies such as ONGC.
India last month took the unpopular step of approving a gas price rise for the first time in three years, a move which could inject much needed investment in local production, but boost imports of more costly LNG.
ONGC shares ended 4.6 percent higher.
(Reporting by Abhishek Vishnoi)
