Thursday, 28 September 2017

HPCL, Indian Oil, BPCL hit 8-week low; HPCL falls 5% intra-day

ONGC to takeover HPCL

Stocks of oil marketing businesses (OMCs) Hindustan Petroleum enterprise (HPCL), Bharat Petroleum enterprise (BPCL) and Indian Oil agency (IOCL) hit their respective eight-week lows at the BSE.

At 9:49 am, HPCL, BPCL and IOCL had been down within the variety of 2% to 3%, compared to 0.06% upward push within the S&P BSE Sensex. In past one month those three stocks have underperformed the marketplace by way of falling between 10% and 13% towards 1.9% decline inside the benchmark index.

some of the individual shares, HPCL has dipped 5% to Rs 397 on BSE in intra-day change after the media report endorse that credit score Suisse cuts rating on the stock.

OMCs have corrected by way of 13-14% from their 52 week highs as clamor grows over higher domestic retail prices, weaker gasoline consumption in Aug'17 and rising crude rate created a great storm.

Analysts at antique stock broker discover the correction as an possibility to add the names.

“The concerns are transitory as global Motor Spirit (MS) and excessive velocity Diesel (HSD) crack spreads have already started easing off (as US refinery utilisation improves), which in the end must replicate in domestic charges and b) healthy car sales over Jul'17 & Aug'17 have to pave way for higher future gas intake,” the brokerage firm said in a report.

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