Oil marketing firms under spotlight

Shares of public sector oil firms such as HPCL, BPCL and IOC will remain in focus this week, as the Government is considering an increase the fuel price. According to reports, this time, both diesel and petrol prices will be increased. If that happens, all these counters will see a surge in share price, as these companies have been severely hit by under-recoveries. Even the rise should auger well for ONGC that will help reduce company's subsidy outgo. Diesel price was raised last year by Rs 3 a litre. Since then there was no hike. However, if the Government backtracks once again, particularly on diesel, then not only these counters but the entire market confidence will also be shaken.