Credit Suisse downgraded Oil and Natural Gas Corp to 'underperform' from 'neutral', citing rising

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risks to earnings in fiscal 2012-13, despite noting the stock continues to trade as a discount to global peers.

The investment bank said the state-run oil explorer's earnings in the next fiscal year could be hit by a combination of lower domestic production, higher taxes, losses at subsidiary Mangalore Refiney and Petrochemicals Ltd, and a high base in the previous fiscal year.

Credit Suisse also cut its target price to Rs 239 from Rs 315 in a note dated on Tuesday.

Shares in ONGC were down 0.3 percent at Rs 273.50 as of 10:50 a.m.