Investment bank Morgan Stanley reports that a delay in reforms on fuel subsidy could see the outlay rise up to around INR 190,000 cr during FY2012-13. Lack of price rises in that of petrol and diesel would see the subsidy bill spiral out of control in India, which heavily subsidizes fuel.
As a result of these events, the firm is negative in its outlook on oil stocks and has downgraded ONGC to equalweight from overweight. GAIL, meanwhile has an underweight rating on its equity on declining oil volumes and higher imports. (Moneycontrol)
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