Downstream: Results will be weak sequentially, led by (1) A fall in GRM, (2) Strong INR, and (3) Absence of huge inventory gains that OMCs enjoyed in 3QFY17. Our top pick is IOC. Upstream players: Oil prices remain strong. However, domestic natural gas prices were muted. Volumes will be flat for ONGC and Oil India. We expect crude prices to remain range-bound at ~USD 55/bbl. We see potential in both ONGC and OIL, if crude prices remain stable. We are upgrading ONGC and Oil India to BUY.