Oil Stocks Outlook for the week – 12 to 16.10.2015
(RIL
in focus on news flow, earnings; ONGC seen up)
( www.rupeedesk.in )
Reliance
Industries Ltd will be in focus next week as market participants will keenly
track development on likely government action against the company after a
report blamed it for siphoning off gas from Oil and Natural Gas Corp Ltd's
block.
RIL
may have to pay up to 120 bln rupees as compensation to state-owned ONGC for
the alleged theft of gas from the latter's G4 and KG-DWN-98/2 blocks, if the
government agrees with the draft report prepared by expert agency DeGolyer and
MacNaughton, ETNOW reported on Thursday.
RIL
stocks declined almost 3% in the last two trading sessions and are expected to
remain muted in the near term. The news is clearly positive for ONGC, whose
shares gained more than 13% in last one week, also aided by the recent uptick
in crude oil price.
The
price of Indian basket of crude has increased more than 10% in last one week
and breached the key level of $50-a-barrel on Wednesday. Continued rise in oil
prices may lift ONGC and Oil India shares further.
Also,
RIL will detail its Jul-Sep earnings after market hours on Friday next week.
Refining margins softened in the quarter and that may weigh on the company's
numbers. Weakness in refining margins may also weigh on the shares of
state-owned refiners, which may continue to trade in a range with focus
shifting to companies reporting earnings.
Revision
in petrol and diesel prices, due on Thursday, may have a sentimental impact on
the stocks of Indian Oil Corp Ltd, Bharat Petroleum Corp Ltd, and Hindustan
Petroleum Corp Ltd.
However,
broadly the stocks are expected to come under pressure in the near term as
margins will continue to weaken, from the highs seen in Apr- Mar.
