Jefferies starts Oil India with 'buy' rating

Jefferies initiates coverage of Oil India Ltd with a "buy" rating and a target price of Rs 665.

The brokerage says the company will benefit from the government's action to allow higher diesel prices, which reduces the subsidy burden on Oil India, and says a potential gas price hike could be an additional catalyst.

The bank says that every $1/mmbtu increase in gas prices would increase Oil India's fiscal 2015 earnings per share by 6 percent.

At 11:45 a.m., Oil India shares are up 2.3 percent.