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Informist, Thursday, Oct. 31, 2024

MUMBAI - The absence of major cues in the market may continue to keep shares of upstream and downstream companies muted next week. Developments in the geopolitical tension in West Asia and the consequent movement in crude oil prices will be monitored by investors. Global crude oil prices rose Thursday amid the chatter in the market that the Organization of the Petroleum Exporting Countries and its allies may delay its plan to raise output. 

Reuters, citing four sources, reported that the cartel may extend its plan to increase oil production by a month or more due to concerns about soft demand and rising supply of the commodity. The oil cartel is scheduled to raise its output by 180,000 barrels per day in December, the report said. Crude oil price movements are closely watched by investors interested in oil stocks as it is a key raw material used by refining companies and the output of upstream players. Any surge in this commodity's prices is a bane for refiners and a boon for oil-producing companies. 

The distress in West Asia, particularly between Israel and Iran, had pushed crude oil prices significantly higher this year. However, prices fell this week, particularly after Israel's retaliatory attack against Iran over the weekend without disrupting the latter's energy supplies eased concerns about crude oil supply disruptions. Iran, a member of the oil cartel, is the third-largest oil producer in the cartel and produces about 3% of the world's oil output.

Brent Crude futures contract traded on the Intercontinental Exchange was 0.8% up at $73.38 a barrel. In April, this had crossed the $90 per barrel mark after the geopolitical tension between the two countries had aggravated. 

On the domestic earnings front, Oil India is scheduled to release its results Tuesday. The upstream company's net profit for the September quarter is expected to have grown a whopping 476% on year to INR 18.73 billion, but revenue may fall 4.3% to INR 56.59 billion, according to the average of estimates from 10 broking firms. The stock closed 0.1% higher at INR 471.75 on the National Stock Exchange. 

On Friday, India's bourses NSE and BSE will hold a Muhurat trading session. The pre-open session will start at 1745 IST and the special live trading session will begin at 1800 IST and end at 1900 IST.

TOP HEADLINES
* Indian Oil raises petrol, diesel prices in Delhi
* CRISIL reaffirms RIL NCD credit rating 'AAA', stable outlook
* RIL arm Reliance New Energy buys balance 7.99% stake in UK-based Faradion
* Earnings Review: IOC's Jul-Sept PAT plummets 98% YoY on weak refining margin
* Analyst Concall: BPCL sees FY26 capex INR 180 bln, Bina plant ready by FY28
* Prabhudas Lilladher upgrades HPCL rtg to 'accumulate', raises target price
* BPCL board OKs JV with Oil India for gas distribution project in Arunachal
* SPOTLIGHT: More ethanol to come from grains than sugarcane from November
* Analysts Concall: HPCL spends INR 72 bln of INR-130-bln capex for FY25
* ONGC Petro allots 1.67 bln shares to ONGC for INR 16.71 bln
* Earnings Review: BPCL's Jul-Sept PAT down 72% on year as GRM falls
* Earnings Review: HPCL Jul-Sept net revenue INR 999 bln, lowest in four qtrs
 

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

Reported by Anjana Therese Antony
Edited by Manisha Baxla

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