Oil Stocks Outlook for the week – 13 to 17.04.2015
( www.rupeedesk.in )
Stocks
of the state-owned oil companies are likely to track broad market on lack of
near term
triggers
and movements will be dictated mostly by news flow as focus shifts to companies
reporting Jan-Mar earnings. Among the companies in the sector, only Reliance
Industries will report earnings next week, that too after the end of trade on
Friday. The refining and petrochemicals major may report buoyant profits for
the quarter on the back of healthy margins despite a fall in crude oil and product
prices.
Refining
margins have been robust in the quarter ended March with the benchmark
Singapore gross refining margin rising to $8.7/barrel from $6.3 in the previous
quarter. The sharp uptick in margins is expected to more than offset the
weakness in the company's upstream business, both the domestic and shale gas
business in US. The company may post 15% sequential growth in its Jan-Mar bottomline.
RIL's
shares may extend its positive run ahead of the earnings. The broad market, on
the other hand, will track key economic data to be released next week, including
headline inflation based on the Consumer Price Index for March.
For
the state-owned oil retailers, the past few weeks have been good as crude oil
prices have
remained
stable around $55 a barrel and the Indian currency at around 62 for a dollar.
Sharp
fluctuation
in any of the two in the near term would have an impact on the stocks of Indian
Oil Corp Ltd, Bharat Petroleum Corp Ltd and Hindustan Petroleum Corp Ltd.
