BNP Paribas downgrades ONGC to 'hold'

MUMBAI (Reuters) - BNP Paribas downgraded Oil and Natural Gas Corp Ltd to "hold" from "buy", saying the recent rally in share prices already factored in the prospect of an increase in diesel prices.

India last month allowed state fuel retailers to gradually raise the price of diesel.

BNP Paribas said it preferred Bharat Petroleum Corp Ltd as a play on potential diesel price hikes.

(Reporting by Abhishek Vishnoi; Editing by Prateek Chatterjee)