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Stocks of oil marketing are seen range bound next week with lack of near term triggers, but rupee-dollar movement and crude prices remain key while developments over gas pricing issue could continue to hold sway over Reliance Industries counter. Rupee rallied after close of equity markets yesterday ending below the psychologically important 62-dollar-a-rupee mark. Stocks of Indian Oil Corp Ltd, Bharat Petroleum Corp Ltd and Hindustan Petroleum Corp Ltd could open up on Monday if Indian currency holds on to yesterday's closing level of 61.92 a dollar or gains further.
However, gains will be capped over concerns that these companies may not be able to continue with their monthly 50 paise per litre diesel price hikes as general elections are approaching. However, senior official’s at all three companies are maintaining that the government is backing them with hikes and it is unlikely to stop. Every hike in diesel prices from now on would be a positive trigger for these stocks. The move will also aid upstream companies Oil and Natural Gas Corp Ltd and Oil India Ltd. On the other hand, stocks of Reliance Industries are also seen range bound with a negative bias with a low valuation seen as the only support for the stock.
Delhi Chief Minister Arvind Kejriwal's first information report filed against the company getting a higher gas price from April and continuous battering of its promoter on charges of corruption and interfering in the government's functioning could continue to weigh on the stock. While the Union government has held on to its stand to allow the company a higher price from April, a probe and a Supreme Court case on the matter may keep investors away as the higher price is not seen having a major revenue booster at a time gas output from the KG-D6 continues to decline. Highlighting the fact, concerns are more on the falling volumes and the Kejriwal issue is only a sentimental impact.
Stocks of oil marketing are seen range bound next week with lack of near term triggers, but rupee-dollar movement and crude prices remain key while developments over gas pricing issue could continue to hold sway over Reliance Industries counter. Rupee rallied after close of equity markets yesterday ending below the psychologically important 62-dollar-a-rupee mark. Stocks of Indian Oil Corp Ltd, Bharat Petroleum Corp Ltd and Hindustan Petroleum Corp Ltd could open up on Monday if Indian currency holds on to yesterday's closing level of 61.92 a dollar or gains further.
However, gains will be capped over concerns that these companies may not be able to continue with their monthly 50 paise per litre diesel price hikes as general elections are approaching. However, senior official’s at all three companies are maintaining that the government is backing them with hikes and it is unlikely to stop. Every hike in diesel prices from now on would be a positive trigger for these stocks. The move will also aid upstream companies Oil and Natural Gas Corp Ltd and Oil India Ltd. On the other hand, stocks of Reliance Industries are also seen range bound with a negative bias with a low valuation seen as the only support for the stock.
Delhi Chief Minister Arvind Kejriwal's first information report filed against the company getting a higher gas price from April and continuous battering of its promoter on charges of corruption and interfering in the government's functioning could continue to weigh on the stock. While the Union government has held on to its stand to allow the company a higher price from April, a probe and a Supreme Court case on the matter may keep investors away as the higher price is not seen having a major revenue booster at a time gas output from the KG-D6 continues to decline. Highlighting the fact, concerns are more on the falling volumes and the Kejriwal issue is only a sentimental impact.
