Oil Stocks Outlook
HPCL, IOC may fall next wk on likely-weak results
This story was originally published at 21:13 IST on 26 July 2024
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MUMBAI - Shares of state-owned refiners such as Hindustan Petroleum Corp and Indian Oil Corp may fall next week on their likely-weak earnings. Both the companies may report a major fall in their bottomline and moderation in gross refining margins, analysts said.
HPCL, scheduled to release its earnings on Monday, is likely to post a sharp on-year decline in its net profit due to lower refining and marketing margins. Its bottomline is seen falling 80% on year to 12.21 bln rupees, over a revenue of 1.15 trln rupees, according to the average of estimates by 10 brokerages. Various broking firms expect moderation in the company's gross refining margin to have extended to the June quarter amid sequential decline in key product cracks.
For IOC, the company may report a 49% on-year fall in its bottomline to 24.5 bln rupees, while revenue may rise slightly by 0.9% to 1.998 trln rupees, as per the average of estimates by 10 broking firms. The company is scheduled to report its results on Tuesday.
Meanwhile, the overall equity market is likely to extend gains next week, with the benchmark Nifty 50 expected to shake hands with new record highs. The Nifty Oil & Gas closed 0.4% higher at 13049.25 points, with most constituents in the green. This index was the least gainers among sectoral indices today.
TOP HEADLINES
* Earnings Outlook: HPCL PAT seen sharply down on weak refining margins
* Chennai Petro Apr-Jun consol PAT falls 36% YoY to 3.57 bln rupees
* ONGC starts oil production from KG-DWN-98/2 block, plans to route gas
* ONGC extends exercise period for conversion of share warrants of JV
* RIL arm buys balance 12.7% shr in Reliance Lithium for 3.7 mln euros
* Earnings Outlook: Windfall tax seen cancelling price gains for ONGC
* Oil Minister Puri meets PSU oil cos, bats for energy security fund
* Earnings Review: RIL Apr-Jun consol PAT misses view; revenue rises 12%
* ONGC arm to buy additional stake in Azeri-Chirag-Gunashli oil field
* BPCL Apr-Jun net profit falls 71% on year in line with Street view
Following are the resistance and support levels for the sector's key stocks for next week, as per calculations based on their prices on the National Stock Exchange:
| Company | Price | Week-on-week change in % | Resistance | Support |
| Bharat Petroleum Corp | 328.80 | 8.20 | 333.20 | 321.20 |
| Hindustan Petroleum Corp | 376.55 | 10.20 | 384.70 | 366.10 |
| Indian Oil Corp | 176.55 | 6.70 | 180.40 | 173.60 |
| Oil & Natural Gas Corp | 331.60 | 3.70 | 341.80 | 325.00 |
| Oil India | 560.65 | (-)1.80 | 584.50 | 545.60 |
| Reliance Industries | 3018.05 | (-)3.00 | 3052.00 | 2963.70 |
| Nifty 50 | 24834.85 | 1.20 | 25152.60 | 24252.10 |
| S&P BSE Sensex | 81332.72 | 0.90 | 82338.10 | 79510.90 |
End
Reported by Anjana Therese Antony
Edited by Akul Nishant Akhoury
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