Nomura Upgrades PSU OMCs
New Delhi   21-Sep-2012

Nomura has upgraded India's three public-sector oil marketing companies IndianOil, BPCL and HPCL from 'Neutral' to 'Buy'. After recent weakness, all of the oil marketing companies are at just 0.5-0.6x book exinvestments. Although last week's price change only helps a bit and the OMCs remain in dire straits, India's government usually comes to the rescue near FY-end to ensure full-year profitability.