State-owned oil companies gain on diesel price hike hopes

Reuters

Reuters Market Eye - Shares in state-owned oil companies gain on hopes that the government will do a one-time hike in diesel prices after Indian parliament's extended monsoon session ends on Saturday, multiple dealers said.

Oil and Natural Gas Corporation Ltd (NSI:ONGC.NS - News) gains 5.3 percent, while among oil marketing companies Bharat Petroleum Corporation Ltd (NSI:BPCL.NS - News) rises 2.7 percent and Hindustan Petroleum Corporation Ltd (NSI:HINDPETRO.NS - News) is up 2.2 percent. Indian Oil Corporation Ltd (NSI:IOC.NS - News) also gains 0.6 percent.

Analysts say higher diesel prices could lower retail fuel under-recoveries and could lift ONGC's earnings estimates for FY14.

(Reporting by Abhishek Vishnoi)

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