Oil India surges as Kotak Equities upgrades stock to #39;add#39;

Oil India surges as Kotak Equities upgrades stock to #39;add#39;

The upgrade in the rating by the brokerage firm is driven by the change in its assumption of crude oil prices in the current and next financial year





Mumbai / June 06, 2022 / 10:20 AM IST





(Representative Image)



The share price of Oil India rose on June 6 after brokerage firm Kotak Institutional Equities upgraded the stock to “add” and raised its fair value target to Rs 285, implying an upside of 13.5 percent from June 3 close.

At 10.02 am, the shares of Oil India were up 4.1 percent at Rs 261.20 on the National Stock Exchange.

The upgrade in the rating is driven by the change in the brokerage firm’s assumption of crude oil prices in the current and next financial year.

Kotak Equities has raised its 2022-23 target for average Brent crude to $105 a barrel from $90. It has also raised its forecast for 2023-24 to $90 a barrel from $70.

The brokerage firm also expects domestic natural gas prices to average $8.9 per mmBtu in 2022-23 as against $2.6 per mmBtu in 2021-22, given the sharp jump in global prices triggered by massive supply shortages.

In light of the changed view on the dynamics of the oil