Oil Stocks Outlook for the week – 27 to 30.04.2015
( www.rupeedesk.in )
Focus
will be on the counter of Reliance Industries Ltd next week after the company
reported betterthan- expected numbers for the quarter ended March, led by expansion
in its refining margins. RIL's turnover for the quarter declined 33.3%
year-on-year to 708.63 bln rupees from 1.1 trln a year ago due to a sharp fall
in crude oil and product prices. The stock may open slightly up on Monday but
most market participants are of the view that gains are unlikely to sustain
through the week because most of the quarterly performance is already priced
in.
Also,
worries remain over the company's upstream business, which continued to witness
decline in gas volumes while crude prices remained low. Gas production from the
flagship KG-D6 fell 4% to 11.3 mscmd in Jan-Mar. The company's continued
confrontation with the government over KG-D6 and the number of arbitrations
will also weigh on sentiments.
Stocks
of state-owned oil marketing companies may continue to trade in a range since
no immediate triggers are likely. Trade will depend on news flow and movement in
crude oil prices, which moved up this week after being stable in the last few
weeks.
Further
spike in oil prices could weigh on the stocks of Indian Oil Corp Ltd, Hindustan
Petroleum Corp Ltd and Bharat Petroleum Corp Ltd. However, that will be seen
positive for Oil and Natural Gas Corp Ltd and Oil India Ltd, which were the top
gainers among oil stocks this week.
Reports
that the government may exempt the two upstream companies from bearing the
subsidy on cooking gas also boosted these stocks and may keep sentiments
positive next week.
