The answers to a higher fiscal deficit may well lie in ONGC's FPO next month as paperwork gets done. With a higher subsidy burden a conservative valuation is a must.. Esp so as the eGoM has never met to even raise Diesel prices. A sale of more govt shares will bring back the Oil major above Coal India, which crossed it in May 2011. With a Market Cap of INR 2.2 Tln, ONGC still lacks the capacity to pull out rabbits from its hat unlike its early hey deys and the coming fall in price of crude may further squeeze its profits. The offering will garner close to INR 10,000 Crores at a 5% discount to today's market price of arnd INR 253. Retail discounts do make it available to retail investors but with a larger institutional cover , the issue will go through esasily unlike SAIL which withdrew last week ( rescheduled) SAIL would have got the government another $2 bln. PSEs in India have added weight in the Sensex since yesterday's annoucement for adding Coal India replacing Rel Infra in the index

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