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The highest loser was Hindustan Petroleum Company (HPCL) whose shares fell almost 8% to the day’s low of Rs 461.10 on the NSE. It was adopted by Bharat Petroleum Company (BPCL) which fell 5.4% to the day’s low of Rs 576. Indian Oil Company (IOC) plunged 5% to hit its intraday low of Rs 161.
The value reduce comes into impact from in the present day and margins of OMCs are more likely to take a success following the choice.
The decline had a rub-off influence on the Nifty Oil & Gasoline index and different shares as properly. The 15-stock index fell by 2% or 224 factors and traded at 11,057.50 round 10:10 am. 13 shares had been buying and selling within the purple round this time. Different main shares like Reliance Industries (RIL), Oil and Pure Gasoline Fee, and Castrol India fell as much as 2%.
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In a notice revealed in the present day, Motilal Oswal stated that there isn’t any indication of any excise responsibility aid from the central authorities and the worth reduce will probably be borne wholly by OMCs.The blended gross advertising margin primarily based on in the present day’s costs was Rs 3.4 per litre which can now be barely and beneath Rs 2 per litre, this report stated. For the quarter (4QFY24TD), the blended margin was Rs 5.4 per litre which can now decline to marginally beneath Rs 3.8 per litre, this report added.Nonetheless, Motilal Oswal has maintained its earnings assumptions for now primarily based on a advertising margin of Rs 3.3 per litre.
“We anticipate a destructive inventory value response for OMCs close to time period given the retail value reduce and up to date elevated Brent crude costs of $85/bbl,” Motilal stated even because it reiterated its purchase ranking on HPCL and IOCL whereas remaining ‘Impartial’ on BPCL.
(Disclaimer: Suggestions, solutions, views and opinions given by the specialists are their very own. These don’t signify the views of Financial Instances)
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