Morgan Stanley raised its ratings on ONGC and HPCL to 'overweight' from 'equalweight', citing benefits from the recent government reforms on fuel prices.
The government last month allowed companies to raise diesel prices, reducing the sector's subsidy burden.
The investment bank raised its target price for ONGC to Rs Rs.397 from Rs.302 earlier, and for HPCL to Rs.455 from Rs.301 earlier.
ONGC shares traded up 0.5 percent as of 9:39 a.m., while HPCL shares were up 0.6 percent.
With inputs from Thomson Reuters
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