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Jefferies has downgraded its price targets for several Indian oil marketing companies (OMCs) due to government-imposed caps on profitability and rising crude oil prices, which may pressure margins. The brokerage recommends buying shares of Bharat Petroleum Corporation Limited (BPCL) and Indian Oil Corporation (IOC) while advising a hold on Hindustan Petroleum Corporation Limited (HPCL), which is expected to underperform. The government’s budgeted LPG subsidy indicates that OMCs will absorb 69% of the under-recoveries for the fiscal year 2025, further suggesting constraints on their marketing profitability. Following these announcements, shares of HPCL, BPCL, and IOC experienced declines of up to 7%. The Nifty Oil & Gas index fell by 2.5%, with HPCL dropping 6%, BPCL slipping 4%, and IOC also witnessing a decrease in share price. In the broader market, the capital goods sector also faced pressure, with shares of Siemens, Hitachi Energy, and Thermax falling significantly after target price cuts from various brokerages.