Emkay Global Financial Services believes that markets have factored in USD 6.5-7/mmbtu of gas price but not LPG & Kerosene pricing reforms and clarity on subsidy sharing. ''We foresee potential upside of 33% and 38% for ONGC and Oil India respectively,'' it said.

''Expect lower subsidy burden, clarity on gas pricing and improved production from existing marginal fields to bolster performance of upstream companies. Resolution of cess under subsidy payment to be an added trigger for ONGC/Oil India.''

''Post diesel deregulation, we expect a Rs 0.5/ltr improvement in diesel marketing margins, translating into a potential upside of 27%, 54% and 33% for Bharat Petroleum Corporation, Hindustan Petroleum Corporation and Indian Oil Corporation,'' said Emkay.

''Despite the recent run up in stock prices, we still see upsides from the current levels.  Reiterate our Buy on OMCs & upstream companies,'' it opined.

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