ONGC gains on disinvestment deferral report

Reuters Market Eye - Oil and Natural Gas Corp gains 0.7 percent.

Disinvestments can be deferred till January, the Economic Times reports citing a senior govt official.

Some short-covering is seen as ONGC's free float shares would not increase in the interim - traders.

Govt aims to sell 10 pct stake in Coal India and 5 pct in ONGC.

At their current market prices, these two could help New Delhi raise two-thirds of its divestment target.

The Nifty <.NSEI> falls 0.3 percent.

($1 = 62.2000 rupees)

(Reporting by Abhishek Vishnoi)