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Reliance Industries Ltd will be in focus next week ahead of its Jan-Mar results on Tuesday while the counters of state-owned oil marketing companies may witness subdued activity. Reliance Industries is expected to report a 30% rise in Jan-Mar net profit at 55.10 bln rupees and a 10% rise in turnover at 937.40 bln rupees. Higher refining margins are likely to be the biggest contributor to the company's performance in Jan-Mar.
The company's gross refining margin the difference between the price of a barrel of crude oil and the basket of products derived out of it is expected to be $9.5-$10.3 a barrel in Jan-Mar, flat sequentially but sharply better than $7.6 a barrel a year ago. The Street is optimistic that the company will manage to spring a positive surprise in terms of the bottomline and refining margins but the euphoria may not have a lasting impact on the stock.
There are serious concerns over the fast-declining KG-D6 gas output that hit a low of 15.5 mscmd this month, and has shown no signs of revival so far. The market will keenly watch any update by the company on its efforts to revive gas production from the block. Stocks of the state-owned oil marketing companies Indian Oil Corp, Bharat Petroleum Corp, and Hindustan Petroleum Corp may not witness much activity in the absence any trigger, and the focus will be more on companies announcing results. The counters are likely to take cues from the broad market, which is seen trading in a narrow range next week. Crude oil prices and rupee-dollar movement also will determine the trend in these stocks. The consistent decline in India's crude oil basket augurs well for these companies, but any gain would be negated by the depreciation in the rupee.
Reliance Industries Ltd will be in focus next week ahead of its Jan-Mar results on Tuesday while the counters of state-owned oil marketing companies may witness subdued activity. Reliance Industries is expected to report a 30% rise in Jan-Mar net profit at 55.10 bln rupees and a 10% rise in turnover at 937.40 bln rupees. Higher refining margins are likely to be the biggest contributor to the company's performance in Jan-Mar.
The company's gross refining margin the difference between the price of a barrel of crude oil and the basket of products derived out of it is expected to be $9.5-$10.3 a barrel in Jan-Mar, flat sequentially but sharply better than $7.6 a barrel a year ago. The Street is optimistic that the company will manage to spring a positive surprise in terms of the bottomline and refining margins but the euphoria may not have a lasting impact on the stock.
There are serious concerns over the fast-declining KG-D6 gas output that hit a low of 15.5 mscmd this month, and has shown no signs of revival so far. The market will keenly watch any update by the company on its efforts to revive gas production from the block. Stocks of the state-owned oil marketing companies Indian Oil Corp, Bharat Petroleum Corp, and Hindustan Petroleum Corp may not witness much activity in the absence any trigger, and the focus will be more on companies announcing results. The counters are likely to take cues from the broad market, which is seen trading in a narrow range next week. Crude oil prices and rupee-dollar movement also will determine the trend in these stocks. The consistent decline in India's crude oil basket augurs well for these companies, but any gain would be negated by the depreciation in the rupee.
