India's oil marketing companies jump as HSBC sees scope for re-rating, further upside

** Shares of oil marketing companies Bharat Petroleum Corporation BPCL, Hindustan Petroleum Corporation HINDPETRO and Indian Oil Corporation IOC gain between 1.5% and 3%, lifting both oil and gas (.NIFOILGAS) and energy CNXENERGY 2% higher

** Rise after HSBC reiterates "buy" on the three stocks and raises target prices

** HSBC sees medium-term benefits for the three companies from refinery upgrade, improved earnings

** Says the stocks' recent rally is "justified as government refused to intervene in pump prices at all" so far

** Sees oil prices as the key driver for the stocks in the next three months, expects further re-rating

** BPCL, HPCL and IOC have gained 79%, 109% and 89%, respectively, since the end of October, compared to 16.5% rise in benchmark Nifty 50 index NIFTY

** HSBC's new targets for BPCL and HPCL are Street-highs, according to LSEG data