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MOSL: Morning India (22/January/18): 1. Oil & Gas; 2. Reliance Inds; 3. HDFC Bank; 4. ITC; 5. Kotak Mahindra Bank; 6. Bharti Airtel; 7. Wipro; 8. HCL Tech

MOrning India (22/January/18): 1. Oil & Gas; 2. Reliance Inds; 3. HDFC Bank; 4. ITC; 5. Kotak Mahindra Bank; 6. Bharti Airtel; 7. Wipro; 8. HCL Tech; 9. HDFC Stand. Life; 10. PC Jeweller; 11. Jubilant Foodworks; 12. Tata Elxsi; 13. NIIT Technologies; 14. Zensar Technologies

Today’s top research idea

OIL & GAS: It’s a spade after all!; ONGC to buy government’s stake in HPCL

• ONGC announced finally that it would be buying government's stake in HPCL at ~13.7% premium to six month average. We believe that this acquisition will bring synergies in terms of larger balance sheet to take on overseas assets, better funding for HPCL's projects, lesser volatility in ONGC's earnings and most to fend off possible competition from private players in marketing of auto fuels if there is any threat to margins. The lower than expected premium also does not put any overdue pressure on ONGC's balance sheet. We continue to recommend Buy rating on HPCL with target of INR576. There is no significant change in valuation of ONGC either. We reiterate Buy with a target price of INR234.

Piping hot news

Centre needs another Rs 4.2 trillion to meet FY18 indirect tax target

• Even as the Centre appears confident of meeting the budgeted indirect tax collection target for FY18, analysis shows it would have to mop close to Rs 4.2 trillion in the last four months to meet the Budget Estimates. In comparison, in the first eight months of the financial year, which ends on March 31, it is likely to have collected around Rs 5 trillion. The budgeted indirect tax collection target is Rs 9.26 trillion. And, while some states have expressed concern over a decline in their revenue under the goods and services tax (GST), analysis shows states are together likely to have received about Rs 1.5 trillion under the levy by the end of November.