Despite a recent note by CLSA warning that a further rise in losses while marketing petrol and diesel might offset the gains for Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL), and Hindustan Petroleum Corporation (HPCL), shares of the oil marketing companies (OMCs) were trading above the flatline on Thursday.
At 11:37IST, shares of IOC, BPCL, and HPCL were trading one percent higher on the BSE.
Also Read |
CLSA said the Asian refining margin has risen by $2 per barrel to $23 per barrel. The firm sees a quarter-on-quarter rise of about $11-15 per barrel in core gross refining margins of IOC, BPCL, HPCL, as well as Reliance Industries in the first quarter of FY23.
The foreign brokerage firm believes that IOC and BPCL are better placed than HPCL due to higher refining integration. Oil and Natural Gas Corporation (ONGC) and Oil India were the top buys for CLSA as these companies are pricing crude prices of sub-$45 per barrel.
At 11:38 IST, shares of ONGC were up 0.7 percent on the BSE, while those of Oil India gained 1.9 percent.
Even as rising fuel prices across the globe have contributed to runaway inflation, it has generated big profits for refiners.
Oil refinery stocks such as Mangalore Refinery and Petrochemicals Ltd and Chennai Petroleum Corporation Ltd have jumped over 100 and 200 percent in 2022 so far.
Comparatively, shares of ONGC, BPCL, HPCL and IOC have fallen 4-23 percent in 2022 so far and those of Oil India have gained 15 percent Year-To-Date.
First Published: Jun 23, 2022 11:50 AM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Lok Sabha Election 2024: Gurugram gears up for crucial polls amidst economic boom and civic woes
Apr 24, 2024 11:41 PM
Lok Sabha Election 2024: Crucial seats up for grabs as Rajasthan, Maharashtra, Bihar gear up for 2nd phase of polls
Apr 24, 2024 11:40 PM