Prayesh Jain of IIFL told CNBC-TV18, "When the government raised the subsidised liquefied petroleum gas (LPG) cylinder quota to six from nine, it was a cause of concern but from 9 to 12, I doubt how much impact that would have on the subsidies because there are very few households which consume over 9 cylinders. People will not consume for the sake of consuming, which is available at a cheaper price."
"So, according to me that should not cause a big flutter in oil marketing companies stocks, but the sentiment is definitely negative given this kind of news. So stocks may head downwards in today’s trading session; Indian Oil Corporation, Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL). However, from investment perspective, BPCL is the top pick."
At 09:50 hrs Bharat Petroleum Corporation was quoting at Rs 335.15, down Rs 4.30, or 1.27 percent.
The share touched its 52-week high Rs 449 and 52-week low Rs 256 on 21 January, 2013 and 06 August, 2013, respectively.
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!
