BofA-Merrill upgrades ONGC, Oil India to 'buy'

Last Updated: Thu, Jan 24, 2013 04:20 hrs

MUMBAI, Jan 24 (Reuters) - Bank of America Merrill Lynch upgraded its ratings on state-run producers Oil and Natural Gas Corp (ONGC) and Oil India Ltd to "buy" from "neutral", citing the prospect of an "imminent" hikes in state-administered gas prices.

The oil ministry will soon send recommendations on a hike in gas prices to the cabinet for consideration, a ministry source told Reuters on Wednesday.

ONGC shares were up 2.9 percent as of 0409 GMT, while Oil India shares were up 2.4 percent. (Reporting by Rafael Nam; Editing by Sunil Nair)

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