OMCs Indian Oil

Technically, HPCL, BPCL stock seem to be favourably placed on the charts with key support at ₹ 324 and ₹ 255, respectively. IOC stock chart however flags a caution sign.

Ethanol is produced largely from sugarcane-based molasses or grain-based sources as feedstock in India

Analysts at CLSA believe that HPCL, BPCL and IOC were pricing-in much higher than historical marketing margins, and a notable premium to the global peers

Macro conditions could improve and valuations are already low

A 19 kg LPG cylinder will cost Rs 1,680 in Delhi, Rs 1640.50 in Mumbai, and Rs 1,805.50 in Kolkata

The excess production is a major issue as mills had planned to expand ethanol production

In past three months, IOC, BPCL and HPCL have underperformed the market by falling 10% to 19% against a marginal 0.22% decline in the Sensex

IOC, HPCL and BPCL were up 3% to 5% on BSE in intra-day trade in otherwise weak market

BPCL and HPCL were down in the range of 1%-2% against 0.54% gain in Sensex.