Morgan Stanley says RIL, ONGC & OIL valuations may start pricing in higher margins

Foreign brokerage Morgan Stanley said oil refiners such as Reliance Industries NSE -0.91 %, Oil India and ONGC NSE -0.04 % will see a reduction in overhang and equity valuations and should start pricing in high sustainable energy margins as government intent gets clear.

This came after the government reduced the windfall tax on diesel and aviation fuel shipments by Rs 2 a litre and scrapped completely a Rs 6-per litre levy on gasoline exports. The government also cut the tax on domestically produced crude by 27 per cent to Rs 17,000 per tonne, Bloomberg reported.