Any correction in oil marketing companies could be a buying opportunity

The gross refining margins or GRMs and gross marketing margins for OMCs are critical

Trends in the global energy markets are crucial if India's growth outlook is to remain healthy. Prices for the Indian crude basket were averaging around $86.2 per barrel through Q1FY25 and then moderated to $84 in July and to $78-79 in August (so far).

But global crude supply may outpace weak global demand in the short term. Lower crude prices are in general, good for India and these help the Oil Marketing Companies (OMCs) in particular. Oil producers have profits capped at around $75-80 a barrel by the windfall tax.  This is the sweet spot for Oil