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Informist, Friday, Apr 25, 2025

MUMBAI - The March quarter earnings season is likely to lend cues to oil stocks in India in the near term, coupled with updates from global markets on US tariffs and the movement in crude oil prices. The fall in crude oil prices due to expectation of oversupply of the commodity has been providing some relief for domestic oil refining stocks as it is a key raw material for these companies. 

Global crude oil prices declined to $66 per barrel Friday from the peak of over $81 per barrel in January. This is because of the Organization of the Petroleum Exporting Countries' announcement to increase oil production announced by May and also its expectation of lower demand for the commodity in 2025 and 2026 due to US tariffs. 

Meanwhile, foreign portfolio investors' bearish approach towards oil, gas, and consumable fuel stocks in India continued in the first half of April. FPIs net sold stocks worth INR 27.59 billion of these companies during Apr. 1-15, slightly higher than the INR 24.49 billion sold during Mar. 19-31, according to the fortnightly sector-wise FPI investment data from the National Securities Depository. 

Oil marketing companies in India are likely to be hit by weaker marketing margins during the reporting quarter and under-recovery in liquified petroleum gas, ICICI Securities had said in its earnings preview report. The results of Bharat Petroleum Corp. are due Tuesday. The company is expected to post 37% year-on-year fall in its net profit to INR 26.60 billion and revenue is likely to decline 4.5% to INR 1.114 trillion, according to the average of estimates from nine broking firms. The broking firm also expects the company's earnings before interest, tax, depreciation, and amortisation to fall 40% on year during the quarter. The stock closed 2.1% lower at INR 295.70 on the National Stock Exchange Friday.

Reliance Industries released its earnings Friday after market hours and posted higher-than-expected bottom line and top line. The company's consolidated net profit for the quarter was INR 194.07 billion, higher than the Street's expectation of INR 183.57 billion. Its revenue was INR 2.64 trillion, also beating the forecast of INR 2.40 trillion. The stock closed 0.1% lower at INR 1,300.40 Friday. 

The Nifty Oil & Gas was among the worst-hit sectoral indices Friday amid the broader sell-off in the Indian equity market. Domestic equities tumbled on fears of further escalation in tension between India and Pakistan. Pakistan Thursday suspended its bilateral agreements with India and closed its airspace to Indian airlines after New Delhi cut its ties with the neighbour following Tuesday's terror attack in Jammu and Kashmir's Pahalgam that left at least 26 people dead. 

TOP HEADLINES
* Saudi Arabia agrees to set up two oil refineries in India via JV
* BPCL, GPS Renewables sign JV for 8-10 compressed biogas plants
* Earnings Outlook: RIL to see sharp slowdown in earnings growth in Jan-Mar
* Earnings Outlook: Weak margins to drag down Indian Oil Jan-Mar earnings
* RBI paper says further fall in crude oil to bode well for inflation outlook
* Oil cos' ethanol blending 18.4% Nov-Mar, no decision so far on exceeding 20%
* US natural gas stocks rise by 16 bcf in week ended Apr 11, says EIA

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 Vandana Hingorani

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