State-run oil companies fall after Moody's report
Shares in state-owned oil companies fell 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.
August 20, 2013 / 15:57 IST
Shares in state-owned oil companies fell 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 Rs 350 billion-400 billion compared with Rs 256 billion in April-June due to the ongoing depreciation of the rupee and the rising crude oil prices.Also read: Oil India hopeful that subsidy concerns will get addressedThe 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 (ONGC) was down 3.98 percent while Indian Oil Corporation (IOC) fell 0.6 percent. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
