Oil stocks rise up 10%; Oil India, ONGC, HPCL lead rally
Shares of Oil India surged as much as 9.3%, while ONGC stock rallied as much as 9.5% as Brent crude oil futures edged lower.
Shares of Oil India surged as much as 9.3%, while ONGC stock rallied as much as 9.5% as Brent crude oil futures edged lower.
OMCs have slashed petrol and diesel prices across the country by ₹2 per litre for the first time in two years since April 2022.
State-owned oil marketing companies bore the brunt of high oil prices and suppressed marketing margins in FY23. Cheap Russian supply and softer crude oil prices may change the script in FY24.
HPCL shares have gained nearly 26% in the last ten sessions, inching close to its 52-week high of ₹309.85 touched on July 26, 2023.
Companies overcome global headwinds and domestic challenges to ride the growth train.
Given a weak global macro outlook, reports indicate crude prices will stay sanguine in the $75-85 range for the year
Shares of ONGC, HPCL, and IOC rose up to 1%, while Adani Total Gas, Reliance Industries, and BPCL fell up to 1% on the BSE.
The recent fall in international crude and product prices has helped state-owned OMCs to narrow their marketing losses.
ICICI Securities has downgraded state-owned oil retailer HPCL to “REDUCE” from “ADD”, BPCL to “ADD” (from “BUY”), while it retained “BUY” call on IOCL.
Fuel retailers kept petrol and diesel prices on hold for 137 days despite crude oil prices increasing by nearly $27 per barrel.