PSU OMCs in focus after fuel price hike

Shares of PSU OMCs may edge higher after the companies announced increase in petrol and diesel prices with effect from midnight of 28 February 2015/1 March 2015. Indian Oil Corporation (IOCL) after trading hours on Saturday, 28 February 2015, announced increase in retail selling price of petrol by Rs 3.18 a litre at Delhi (including state levies), with corresponding increase in other states. The diesel price was raised by Rs 3.09 a litre. IOCL said there has been steep increase in international prices of both petrol and diesel after the last price revision on 16 February 2015. The rupee depreciated slightly during this period. The combined impact of both these factors warrants increase in retail selling prices of both petrol and diesel, IOCL said in a statement. The movement of prices in international oil market and the rupee-dollar exchange rate shall continue to be closely monitored and developing trends of the market will be reflected in future price changes, IOCL said.

Meanwhile, the rates of non-subsidised LPG was increased by Rs 5 per cylinder with effect from midnight of 28 February 2015/1 March 2015, on firming international oil rates. The increase comes on the back of seven straight reductions in rates of non-subsidised or market-priced LPG since August 2014. The customers buy non-subsidised after exhausting their quota of 12 cylinders at subsidised rates.

Aviation stocks will be watched after jet fuel price hiked by a steep 8.2% on 1 March 2015. The price of aviation turbine fuel (ATF), or jet fuel, in Delhi was hiked by Rs 3,849.97 per kilolitre, or 8.2%, to Rs 50,363 per kilo litre with effect from midnight of 28 February 2015/1 March 2015.

Shares of auto companies will be watched as theses firms will start unveiling monthly sales volume data for February 2015.

Bajaj Electricals said that ratings agency, ICRA, has downgraded the rating of the company's Non-Convertible Debenture (NCD) programme from [ICRA] A+ (pronounced ICRA A plus) to [ICRA] A (pronounced ICRA A) with negative outlook.

In a separate announcement, Bajaj Electricals said that ICRA has downgraded the rating of company's Commercial Paper (CP) programme of Rs 200 crore from [ICRA] A1 + (pronounced ICRA A one plus) to [ICRA] A1 (pronounced ICRA A one). Further, ICRA has downgraded the rating for company's Line of Credit (LOC) of Rs 2334.41 crore. Long Term rating from [ICRA] A+ (pronounced ICRA A plus) to [ICRA] A (pronounced ICRA A); and Short Term rating from [ICRA] A1+ (pronounced ICRA A one plus) to [ICRA] A1 (pronounced ICRA A one.

GMR Infrastructure said its board has finalised the terms and conditions of the issue of equity shares having face value of Re 1 each by the company on a rights basis to its existing shareholders (as on the record date). The company will raise Rs 1401.83 crore by alloting 93.45 crore equity shares at an issue price of Rs 15 each. The shares will be offered on a rights basis to the eligible equity shareholders in the ratio of 3 equity shares for every 14 equity shares held on the record date.

Videocon Industries' net profit rose 5.56% to Rs 18.61 crore on 2.24% decline in total income to Rs 3355.16 crore in Q4 December 2014 over Q4 December 2013.

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