Oil Stocks Outlook For The Week - 23 to 27.10.2017
Oil Stocks Outlook For The Week - 23 to 27.10.2017
( www.rupeedesk.in )
The stocks of public sector oil refiners and retailers Indian Oil Corp, Bharat Petroleum Corp, and Hindustan Petroleum Corp are seen rising next week on the back of robust fundamentals and expectations of strong earnings for the September quarter. The three state-owned fuel retailers continue to be on solid ground, benefiting from healthy domestic demand for fuels as well as robust core refining and marketing margins, which lend a positive outlook to these stocks, tracking the petroleum sector. The three companies received some relief a couple of weeks ago, when the
government decided to cut basic excise duty on petrol and diesel by 2 rupees a ltr, following a spurt in international prices of crude oil and petroleum products over recent weeks. The government has also urged states to cut value added tax on the two automobile fuels and a few states such as
Gujarat and Madhya Pradesh have responded by reducing the levy. If more states comply, these companies are expected to get more room to better manage their marketing margins. The strength in crude oil prices over recent weeks is expected to continue next week, driven primarily by the unrest
in Iraq and the hostility between the US and Iran. Escalating tensions between the Iraqi government and the semiautonomous Kurdish region have been pushing oil prices on fear that the conflict could strangulate crude oil exports Seen up on hope of tariff hike by RJio May rise on positive industrial data from the region. The tensions followed a controversial referendum in which the Kurdish people voted for independence of Kurdistan. Stocks of upstream players such as Oil and Natural Gas Corp and Oil India may move in line with the movement in crude oil prices next week. The fundamentals for these stocks have begun to improve as strong oil prices will lead to strong financial performance for upstream companies.
Source : Cogencis Information Services Ltd.
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( www.rupeedesk.in )
The stocks of public sector oil refiners and retailers Indian Oil Corp, Bharat Petroleum Corp, and Hindustan Petroleum Corp are seen rising next week on the back of robust fundamentals and expectations of strong earnings for the September quarter. The three state-owned fuel retailers continue to be on solid ground, benefiting from healthy domestic demand for fuels as well as robust core refining and marketing margins, which lend a positive outlook to these stocks, tracking the petroleum sector. The three companies received some relief a couple of weeks ago, when the
government decided to cut basic excise duty on petrol and diesel by 2 rupees a ltr, following a spurt in international prices of crude oil and petroleum products over recent weeks. The government has also urged states to cut value added tax on the two automobile fuels and a few states such as
Gujarat and Madhya Pradesh have responded by reducing the levy. If more states comply, these companies are expected to get more room to better manage their marketing margins. The strength in crude oil prices over recent weeks is expected to continue next week, driven primarily by the unrest
in Iraq and the hostility between the US and Iran. Escalating tensions between the Iraqi government and the semiautonomous Kurdish region have been pushing oil prices on fear that the conflict could strangulate crude oil exports Seen up on hope of tariff hike by RJio May rise on positive industrial data from the region. The tensions followed a controversial referendum in which the Kurdish people voted for independence of Kurdistan. Stocks of upstream players such as Oil and Natural Gas Corp and Oil India may move in line with the movement in crude oil prices next week. The fundamentals for these stocks have begun to improve as strong oil prices will lead to strong financial performance for upstream companies.
Hindpetro - Down
Ongc - Down
Ongc - Down
Bpcl - Down
Gail - Down
Oil - Down
Gail - Down
Oil - Down
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Source : Cogencis Information Services Ltd.
