BPCL, HPCL and IOC may rise up to 11 per cent in coming sessions, and if they manage to sustain their upward rally, medium-term bias may strongly shift in bull's favour.
With this decline in crude prices analysts expect marketing margins of HPCL, BPCL and IOCL to improve further.
Oil & Natural Gas Corporation and Reliance Industries can rise up to 8 per cent
According to the technical analyst from Anand Rathi, Hind Petro can surge to Rs 278; while SAIL can advance to Rs 97.
After two tight quarters of profit-margin shrinkage due to global volatility, Indian OMCs are expected to see reduction in operational losses in the October-December quarter (Q3FY23).
Stocks to watch today: Bajaj Finance said that new loans booked during Q3FY23 were the highest-ever at 7.8 million
The central Board of indirect taxes and Customs has raised windfall tax on petroleum, crude, and aviation turbine fuel effective from January 3
Their expectation is based on the recent action in October by the OPEC of cutting production by 2 million barrels per day. This suggests that the OPEC is looking to defend price, they said
The state-owned oil marketing company reported the second straight quarterly loss despite revenue rising 30 per cent to Rs 1.13 trillion.
The company blamed depressed marketing margins on motor fuels and LPG as the main reason for its profitability being impacted over the latest quarter
Analysts believe that OMCs would see further decline in GRMs in Q2FY23, as cracks correct on a sequential basis and lower oil prices would drive sizable inventory losses