Oil Stocks Outlook for the week – 27 to 30.04.2015
( www.rupeedesk.in )
Stocks
of the state-owned oil marketing companies will depend on news flow and
movement in crude oil prices, which maintained momentum for the second
consecutive week.
Oil
prices, which had started inching up this month, are hovering around the $60
per barrel mark now. Any further spike in oil prices could weigh on stocks of
Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp.
However,
that will be seen positive for upstream players like Oil and Natural Gas Corp
and
Oil India, which have been under pressure due to the low oil prices.
Also,
government's confirmation of reports that the two upstream companies will be
exempted from bearing subsidy on cooking gas for financial year 2015-16 (Apr-Mar)
and from bearing any subsidy burden for the Jan-Mar quarter also helped the two
stocks, and may keep sentiment positive next week. Further depreciation of the
rupee will also be seen a positive for upstream companies.
Cairn
India, whose Jan-Mar results were way below street expectations, may still feel
the tremors early next week. However, movement in the stock may not be much as
the market is likely to have priced in the dismal performance. In the results
declared Thursday evening, Cairn India reported a loss of 2.41 bln rupees in
Jan-Mar, its first quarterly loss in seven years. If crude prices remain firm or
inch up, Cairn shares could gain from their low levels.
