Guys, I don’t understand this. Crude touched 10 month low yesterday. So, petroleum stock price must increase right? Since the import cost is reduced! I thought it would go up today, but the case was exactly opposite. Any other factors to be accounted for?
ONGC, OIL are producers. If crude falls it is negative for those stocks.
for BPCL and IOC it is inventory losses while falling crude
I beg to differ in case of BPCL & IOC being OMCs,
It seems some big fishes might be accumulating these stocks at low under pretext of falling crude
We being oil importing company, constantly need to purchase the fuel from international markets
@VIPULK At that point of time OMC are suffering due to subsidy burden on them. Delayed payment from govt. After decontrol of diesel and petrol pricing, OMC got breather. Now OMC are doing daily price adjustment on diesel and petrol. This will reduce their losses. More over strengthening Rupee is beneficial for both. On Revenue front lower prices result in less amount. This will show lesser than previous quarter.
Long-term these companies are negative due to moving to Electric vehicles by 2030. DII slowly reducing their positions
It is reflected in falling sales growth.
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Accepted ur points haribabu… Thnx 