INSUBCONTINENT EXCLUSIVE:
MUMBAI: Investors in oil marketing companies have lost Rs 1.39 lakh crore of wealth in the last two days after the government's decision
to ask these firms to absorb a portion of the cut in excise duty on fuel prices
The move is perceived as the government backtracking on oil sector reforms, including free pricing of petrol and diesel.
Three oil marketing
per cent after several brokerages cut their target prices for shares of these companies by 20-50 per cent
valuation multiple would go back to pre-de-regulation era as concern of higher subsidy burden would weigh on valuation being an election
It also raised fears of return of subsidy regime if crude spikes further before the upcoming elections
