Oil Stocks Outlook for the week – 28.09.2015 to 01.10.2015
Seen
in range on lack of triggers, news flow key
( www.rupeedesk.in )
Stocks
of most oil companies may trade in sync with the broad market next week as no immediate
trigger is in sight. The stock of Reliance Industries Ltd may see some
newsbased
activity
as the Supreme Court will hear the company's plea over a dispute in the KG-D6
arbitration case. Stocks of public sector oil companies are seen trading in a
range, but the bias will be negative in line with the broader market, which is
seen a tad weak as foreign institutional investors continue selling in emerging
markets. Market sentiments are unlikely to be swayed much in the positive
direction even if the Reserve Bank of India cuts the policy rate by 25 basis
points, as the market is expecting. The outlook for the oil market continues to
remain weak. The Indian basket of crude oil has been holding steady around
$45-46 a barrel in the past few weeks.
Refining
margins also have weakened this quarter, after hitting record highs in Apr-Jun.
Stocks of state-owned refiners--Indian Oil Corp Ltd, Bharat Petroleum Corp Ltd
and Hindustan Petroleum Corp Ltd--will continue to move in a range, but not
much upside is seen from current levels. These companies are expected to revise
petrol and diesel prices next week. There was no price revision on Sep 15. The
revision, if any, is likely to be small even on Sep 30 as oil prices have
fallen only slightly. From $47.88 per barrel on Aug 31, the price of Indian
basket of crude has declined to $46.33 this week.
