Nomura retains its 'Hold' rating on ONGC

Nomura has retained its 'Hold' rating on ONGC with a target price of Rs 323.

The government went ahead with the auction method for 5% stake sale in ONGC while ignoring the real problem of subsidy sharing amid surging crude oil prices.

Its claim prior to the auction of several foreign investors and sovereign funds having shown interest fell flat.

With the fiscal year-end fast approaching and in the wake of the government's constrained finances, the broking company believes that there is growing risk of higher subsidy burden on upstream companies.