BofA Merrill raises target price on HPCL, BPCL, Oil India

Bank of America Merrill Lynch raised its target price on state-run oil marketing companies Indian Oil , Hindustan Petroleum and Bharat Petroleum after India raised diesel prices about 9% on Friday.

Bank of America Merrill Lynch raised its target price on state-run oil marketing companies Indian Oil , Hindustan Petroleum and Bharat Petroleum after India raised diesel prices about 9% on Friday.

Diesel will now cost just over 41 rupees per litre in the capital after the government panel raised prices by a record 3.4 rupees (7.6 US cents) per litre including local taxes. It also raised kerosene and cooking gas prices.

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BofA raised its target price on HPCL to 500 rupees from 441 rupees and on Oil India to 1,756 rupees from 1,583, while keeping its "buy" rating on both stocks. BPCL's target price was raised to 739 rupees from 650 and BofA kept a "neutral" rating on the stock.