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HPCL, Indian Oil, BPCL hit 8-week low; HPCL falls 5% intra-day

In past one month, HPCL, Indian Oil and BPCL have underperformed the market by falling between 10% and 13% against 1.9% decline in Sensex.

SI Reporter  |  Mumbai 

ONGC to takeover HPCL

Shares of oil marketing companies (OMCs) Hindustan Petroleum Corporation (HPCL), Bharat Petroleum Corporation (BPCL) and Corporation (IOCL) hit their respective eight-week lows on the BSE.

At 9:49 am, HPCL, and IOCL were down in the range of 2% to 3%, as compared to 0.06% rise in the S&P BSE Sensex. In past one month these three stocks have underperformed the market by falling between 10% and 13% against 1.9% decline in the benchmark index.

Among the individual stocks, has dipped 5% to Rs 397 on BSE in intra-day trade after the media report suggest that Credit Suisse cuts rating on the stock.

have corrected by 13-14% from their 52 week highs as clamor grows over higher domestic retail prices, weaker fuel consumption in Aug'17 and rising crude price created a perfect storm.

Analysts at Antique Stock Broking find the correction as an opportunity to add the names.

“The concerns are transitory as global Motor Spirit (MS) and High Speed Diesel (HSD) crack spreads have already started easing off (as US refinery utilisation improves), which eventually should reflect in domestic prices and b) healthy vehicle sales over Jul'17 & Aug'17 should pave way for higher future fuel consumption,” the brokerage firm said in a report.

Meanwhile, the ANI report suggest that, Dinesh K Sarraf, the chairman and managing director of the Oil and Natural Gas Corporation (ONGC), said that the firm is hoping to complete the selling of its existing stakes in other public sector undertakings (PSUs) to partly fund the acquisition of the HPCL, by the end of December. CLICK HERE TO READ FULL REPORT

The ONGC owns 14% stake in the IOCL and a 5% stake in the GAIL (India). ONGC will acquire the government's 51.11% stake in through a bulk or block deal sometime in November or December at the prevailing market price.

H P C L 406.00 464.10 -12.52
I O C L 389.70 439.90 -11.41
B P C L 457.55 507.95 -9.92

First Published: Thu, September 28 2017. 10:08 IST