HPCL, BPCL, IOCL gain up to 5%; Nifty Oil & Gas Index rises 1.5%

Bharat Petroleum Corporation stood amongst largest gainers in Nifty -50 Stocks with gains of close to 3% .  Indian Oil Corporation was also not far behind with share price gaining 2-3%.

Hindustan Petroleum Corporation share prices nevertheless rose close to 5% during intraday tards on Wednesday.

The rally Bharat Petroleum , Hindustan Petroleum, Indian Oil share prices is likely to have been led by some softness in crude prices seen over past two sessions as Brent Crude dipped below $90 a barrel levels.

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The Oil Marketing Companies as Bharat Petroleum , Hindustan Petroleum, Indian Oil have seen pressure on their share prices in the recent past led by the rise in the Crude prices to beyond $90 a barrel on geopolitical worries.

The rising Crude prices not only impact the margins the OMCs as Bharat Petroleum , Hindustan Petroleum, Indian Oil earn on selling fuel from retail outlets it also raises their working capital requirements.

The analysts say that while volatility in crude prices still is not ruled out , nevertheless the impact also is likely to be temporary till election results are declared. The analysts at Antique Stock Broking had said that they believe petrol and  diesel price revision will resume post the elections and OMCs will recover any under-recoveries on a full-year basis.

Meanwhile analysts expect OMCs as Bharat Petroleum , Hindustan Petroleum, Indian Oil to lead the Q4 show for Oil and Gas sector.

Analysts at Elara Securities India Pvt Ltd said that they “Expect Elara Oil & Gas universe (14 companies) to post a 10% sequential Ebitda growth in Q4 (estimated), driven by higher marketing margin by oil marketing companies ( as Bharat Petroleum , Hindustan Petroleum, Indian Oil ).

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Bharat petroleum remains among Elara’s 2 top picks in the Sector

Besides Hindustan Petroleum is pick of the mponth for Anand Rathi Research . They  advise traders to buy the stock in the range of 470 – 465 with a stop loss of 448 for upside target of ₹510.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions

 salmosy

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Published: 10 Apr 2024, 01:28 PM IST