Reuters Market Eye - Shares in state-owned oil companies fall after Moody's said credit quality of Indian oil companies may weaken if the government continues to use the same subsidy-sharing mechanism as it did for the June quarter.
Moody's add the fuel subsidy for July-September will likely rise to 350 billion-400 billion rupees compared with 256 billion rupees in April-June due to the ongoing depreciation of the rupee and the rising crude oil prices.
The rupee slumped to a record low in early trade on Tuesday and bond yields hit another five-year high as Asia's third-largest economy bore the brunt of growing money flows out of emerging markets.
Oil and Natural Gas Corporation Ltd
(Reporting by Abhishek Vishnoi)
