www.rupeedesk.in
With just three trading sessions next week and the focus shifting entirely to earnings, stocks of most oil companies are seen in a range, but movement of the rupee against the dollar would continue to weigh on state-owned marketing companies. Indian financial markets are closed on Monday for Ambedkar Jayanti and on Apr 18 for Good Friday. Apart from quarterly earnings, general elections will continue to command market attention with polling underway in many constituencies. Stocks of Reliance Industries will mostly track the market trend.
Trade will be largely subdued in the holiday-shortened week. The rupee was mostly stable around the 60-a-dollar mark this week and may continue to trade in a range next week. Stocks of Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp would track the Indian currency, but will only react to sharp fluctuations. However, their decision to not increase diesel prices this month has led to some concerns as continuation of the monthly hikes is key for the improvement of financial health of these companies.
We believe that these companies will resume the process after elections end in May, but the move will depend a lot on the new government that comes to power. Despite the surprising halt in monthly diesel price hikes, likely weaker oil prices are seen positive for these companies. On the other hand, we are still positive on Reliance Industries which could see improvement in the fundamentals of its core businesses of refining and petrochemicals. But traders don't see much upside in the stock in the near term. Steady refining margins, firm global demand for plastics and value-accretive new core business projects are positives.
With just three trading sessions next week and the focus shifting entirely to earnings, stocks of most oil companies are seen in a range, but movement of the rupee against the dollar would continue to weigh on state-owned marketing companies. Indian financial markets are closed on Monday for Ambedkar Jayanti and on Apr 18 for Good Friday. Apart from quarterly earnings, general elections will continue to command market attention with polling underway in many constituencies. Stocks of Reliance Industries will mostly track the market trend.
Trade will be largely subdued in the holiday-shortened week. The rupee was mostly stable around the 60-a-dollar mark this week and may continue to trade in a range next week. Stocks of Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp would track the Indian currency, but will only react to sharp fluctuations. However, their decision to not increase diesel prices this month has led to some concerns as continuation of the monthly hikes is key for the improvement of financial health of these companies.
We believe that these companies will resume the process after elections end in May, but the move will depend a lot on the new government that comes to power. Despite the surprising halt in monthly diesel price hikes, likely weaker oil prices are seen positive for these companies. On the other hand, we are still positive on Reliance Industries which could see improvement in the fundamentals of its core businesses of refining and petrochemicals. But traders don't see much upside in the stock in the near term. Steady refining margins, firm global demand for plastics and value-accretive new core business projects are positives.
