The Hindu Business Line : Oil, gas scrips gain from interest in ONGC offer

Brokers maintained that rumours of Mr Warren Buffet, the American investor, having bid heavily in the ONGC issue only served to strengthen the feelgood factor in the sector.

"One could say that the ONGC issue is almost like test marketing to see what would be the appetite for such a large issue," market sources said.

"And the response to today's issue is a demonstration of the fact that overseas investors are more than serious about investing in India.''

Analysts said that the market expects the disinvestment story to continue. "One does not see any slowdown in the sector. Even today we are importing around Rs 75,000-80,000 crore of oil products," said an analyst with a leading domestic broking house.

"If we are able to cut down on this by even 25-50 per cent, our fiscal deficit would be solved and we would show a much higher GDP growth. At this juncture, it all depends on how best the Government uses our new-found oil and gas reserves to stimulate our economy.''

According to Mr Sandeep Shenoy, strategist and head of research, Pioneer Intermediaries, expectations of improved earnings is driving these stocks.

"Today the refiners are on a good footing. The refining margins globally have improved by 35 per cent. One can expect an upward oil price revision after election,'' he added.

On the strengthening of other PSU stocks outside the sector on Friday, Mr Shenoy said that the jitters or the overhang of the IPOs had been absorbed. "The market will henceforth be driven by fundamentals, which in turn will drive valuations,'' he added.

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