More Stories

Informist, Friday, Sep 27, 2024

MUMBAI - Shares of state-owned oil refining companies are likely to rise more in anticipation of weakness in crude oil prices, analysts tracking the sector said. They added that the market has not completely factored in the benefits of lower crude oil prices for oil marketing companies, which gives headroom for further upside, though sharp gains are unlikely. 

Crude oil prices fell after the Organization of the Petroleum Exporting Countries and allies revised their demand outlook downward for 2024 and 2025. Reports said the world's largest crude exporter, Saudi Arabia, is willing to abandon its unofficial $100-per-barrel price target and increase production in December, even if it results in continued lower prices. At 2000 IST, Brent crude November contract traded on the Intercontinent Exchange was at $71.50 per bbl, compared to $75 a bbl a week ago. 

In the previous few quarters, the surge in crude oil prices, a key raw material used by refining companies, had hit oil marketing companies' refining margins and profits. In April, the geopolitical tension in West Asia had pushed crude oil prices above the $90-per-bbl mark, resulting in weak financial performance of Indian refiners.

Amid falling prices of crude oil, shares of Bharat Petroleum Corp hit its record high of 370.50 rupees on the National Stock Exchange and closed a whopping 6.4% higher, a rare price movement seen for Nifty 50 constituents. Shares of its peers, Hindustan Petroleum Corp and Indian Oil Corp, also closed higher. The Nifty Oil & Gas index closed 2.4% higher as the top sectoral gainer, with most constituents in the green. 

TOP HEADLINES
* Sugar cos must focus on avenues other than ethanol - petroleum secy
* CRISIL sees India adding 35-40 mln tn crude refining capacity by FY30
* Fin min says low oil prices bright spot for econ amid some concerns
* A 5 rupee/ltr fuel price cut can lower inflation by 29 bps, says BoFA
* Fitch affirms BPCL's long-term issuer rating at BBB-; outlook stable
* India, Brazil join forces to boost sustainable jet fuel output, use
* ONGC Videsh inks non-associated gas deal for Azerbaijan oil field
 

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:

End

US$1 = 83.70 rupees

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Anjana Therese Antony
Edited by Tanima Banerjee

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2024. All rights reserved.