JPMorgan referred to CNBC-TV18's newsbreak on June 8, which said that India's oil refiners may consider a cut in fuel prices as their financial health has improved significantly.
The brokerage believes that the report is not a negative, given that implied gross margin on diesel and gasoline are in the Rs 10-12 per litre range, compared to the historical average of Rs 2-2.5 per litre.
The report is among a series of positive brokerage commentary on India's oil marketing companies, after they suffered significant losses in the first half of financial year 2023. However, in the March quarter, which is the last of the financial year, the three refiners - HPCL, BPCL, and IOC saw combined profits of nearly Rs 20,000 crore.
Shares of Oil Marketing Companies - HPCL, BPCL and IOC are trading with gains between 1-3 percent on Monday.
