BPCL, HPCL gain as oil continues to decline
Shares of OMCs continued to gain momentum as Brent crude prices slipped to nearly an 18-month low after US inventories touched a 22-year high.
By ET Online |
MUMBAI: Shares of oil marketing companies gained momentum as the Brent crude oil prices slipped to nearly an 18-month low after US inventories touched a 22-year high.
There are expectations of a hike in diesel prices as well, according to dealers.
"Brent crude fell to its lowest in 18 months on Thursday at around $92 a barrel on demand growth concerns. It slid 28 percent from this year's peak above $128 touched in March," according to a Reuters report.
Mehraboon Irani, Principal & Head-Pvt. Client Group Business at Nirmal Bang Securities, is bullish on HPCL and expects the stock to move higher.
“Oil marketing companies provide a great opportunity, especially stocks like HPCL and IOC which have not participated like BPCL, which went up sharply mainly because of the Mozambique development. HPCL and IOC were largely ignored.
About a couple of weeks ago, we came out with a buy call on HPCL and we are looking at a target of Rs 370. Considering the book value of the share is around Rs 370, there are pockets of opportunities here,” Irani added.
Meanwhile, Raamdeo Agrawal, Managing Director at Motilal Oswal Financial Services, told ET Now in an interview that easing prices of commodities and oil are a positive for the markets.
At 3:20 p.m., HPCL surged 4.44 percent, IOC gained 3.38 percent and BPCL was up 0.67 percent.
Chief Economic Advisor Kaushik Basu recently recommended a partial decontrol of diesel prices. The move will take some time, he added.
There are expectations of a hike in diesel prices as well, according to dealers.
"Brent crude fell to its lowest in 18 months on Thursday at around $92 a barrel on demand growth concerns. It slid 28 percent from this year's peak above $128 touched in March," according to a Reuters report.
Mehraboon Irani, Principal & Head-Pvt. Client Group Business at Nirmal Bang Securities, is bullish on HPCL and expects the stock to move higher.
“Oil marketing companies provide a great opportunity, especially stocks like HPCL and IOC which have not participated like BPCL, which went up sharply mainly because of the Mozambique development. HPCL and IOC were largely ignored.
About a couple of weeks ago, we came out with a buy call on HPCL and we are looking at a target of Rs 370. Considering the book value of the share is around Rs 370, there are pockets of opportunities here,” Irani added.
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Meanwhile, Raamdeo Agrawal, Managing Director at Motilal Oswal Financial Services, told ET Now in an interview that easing prices of commodities and oil are a positive for the markets.
At 3:20 p.m., HPCL surged 4.44 percent, IOC gained 3.38 percent and BPCL was up 0.67 percent.
Chief Economic Advisor Kaushik Basu recently recommended a partial decontrol of diesel prices. The move will take some time, he added.
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