Mumbai: Bank of America Merrill Lynch raised its target price on state-run oil marketing companies Indian Oil, Hindustan Petroleum and Bharat Petroleum after the government raised diesel prices about 9% on Friday.
Diesel will now cost just over Rs41 per litre in the capital after the government panel raised prices by a record Rs3.40 (7.6 US cents) per litre including local taxes. It also raised kerosene and cooking gas prices.
BofA raised its target price on HPCL to Rs500 from Rs441 and on Oil India to Rs1,756 from 1,583, while keeping its “buy” rating on both stocks. BPCL’s target price was raised to Rs739 from 650 and BofA kept a “neutral” rating on the stock.