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Stocks of the three state-owned oil marketing companies are seen rangebound with a positive bias in the coming five sessions, as the rupee rose against the dollar for the third straight session today. With crude oil prices stable, shares of Indian Oil Corp, Bharat Petroleum Corp, and Indian Oil Corp will continue to track the rupee-dollar movement. Also, the focus next week would be on interest rate-sensitive sectors as the Reserve Bank of India will detail the first quarter review of its monetary policy for 2013-14.
The Indian basket of crude has continued to hover around the $105 a barrel mark, but the sharp depreciation in the rupee over the last few months had made the commodity costlier for the companies pushing the revenue loss on diesel up to almost 9.50 rupees a litre from around 3.7 rupees three months ago. Oil Minister M. Veerappa Moily today said the government will continue to support oil companies in raising diesel prices by 45-50 paise a month though it may not allow them to increase the quantum of hike. Any increase in diesel prices, at a time when the political situation is volatile and general elections are approaching, will be seen as positive by the market and may result in small upticks in the stock.
However, a reversal in the rupee-dollar trends may cause a decline in the stocks of these companies. Stocks of Reliance Industries are also seen rangebound next week but with a negative bias. The company reported operationally weak results for the quarter ended June do not see any significant improvement in both refining and petrochemical segments in the near term though the long-term outlook is projected as robust.
The stock may track the market trend and rupee-dollar movement in the near term. Depreciation of the rupee increases realizations for the company, as prices of crude, gas and petroleum products are marketed in dollars.
Stocks of the three state-owned oil marketing companies are seen rangebound with a positive bias in the coming five sessions, as the rupee rose against the dollar for the third straight session today. With crude oil prices stable, shares of Indian Oil Corp, Bharat Petroleum Corp, and Indian Oil Corp will continue to track the rupee-dollar movement. Also, the focus next week would be on interest rate-sensitive sectors as the Reserve Bank of India will detail the first quarter review of its monetary policy for 2013-14.
The Indian basket of crude has continued to hover around the $105 a barrel mark, but the sharp depreciation in the rupee over the last few months had made the commodity costlier for the companies pushing the revenue loss on diesel up to almost 9.50 rupees a litre from around 3.7 rupees three months ago. Oil Minister M. Veerappa Moily today said the government will continue to support oil companies in raising diesel prices by 45-50 paise a month though it may not allow them to increase the quantum of hike. Any increase in diesel prices, at a time when the political situation is volatile and general elections are approaching, will be seen as positive by the market and may result in small upticks in the stock.
However, a reversal in the rupee-dollar trends may cause a decline in the stocks of these companies. Stocks of Reliance Industries are also seen rangebound next week but with a negative bias. The company reported operationally weak results for the quarter ended June do not see any significant improvement in both refining and petrochemical segments in the near term though the long-term outlook is projected as robust.
The stock may track the market trend and rupee-dollar movement in the near term. Depreciation of the rupee increases realizations for the company, as prices of crude, gas and petroleum products are marketed in dollars.
