ONGC is top loser on BSE

ONGC is currently the top loser on the BSE, with the stock losing 5% at Rs.415.15, with an intra day low at Rs.406.50. It is followed by other oil stocks – HPCL, BPCL and Oil India.

These stocks are down after the much awaited decision from the Cabinet Committee on Economic Affairs (CCEA) on gas pricing was expected yesterday. It was expecti ng a gas price hike and the Govt ended up only deferring the decision by another three months.  The Govt has said that it needs more time to review matter. The selloff in ONGC and OMCs is an immediate short term negative reaction.