Tag: omc

Shares of oil marketing companies (OMC) and city gas distribution players (CGDs) are under pressure, falling up to 6 percent on the BSE in Thursday’s intra-day trade as oil prices topped the $100 a barrel-mark for the first time since 2014 after Russia ordered military operations in Ukraine and reports emerged of blasts in some major Ukrainian cities. Rising crude oil prices are considered a major challenge for India Inc. because any hike in raw material and energy prices may put further pressure on the margins of domestic companies going ahead. Unsurprisingly, following escalating geopolitical tensions, the Indian stock markets nosedived. Following the rise in crude oil prices, the cost of aviation turbine fuel (ATF) has advanced 19 percent to Rs 90,519 per kl from Rs 76,062 per kl on January 1. The rise in ATF prices may hit the balance sheet of airline companies which accounts for more than 35 percent of the cost of running an airline in India. Read more

Crude prices have recovered from last week's low of $67.42, although the momentum is not showing much excitement. In the meantime stocks of oil marketing companies (OMCs) are witnessing some profit-taking. Shares of BPCL and Hindustan Petroleum Corporation (HPCL) have declined over 10 percent from the highs touched last month. But a rebound in the last couple of sessions signals stocks could gain momentum. Here is some technical analyses of some major OMCs: S&P BSE OIL & GAS Outlook: Weak momentum at current levels The index has broken its 50-days moving average (DMA) and 100-DMA placed at 16,356 and 15,778, respectively, suggesting resistance at higher levels. The next support for the index comes at its 200-DMA, placed at 14,745, as per the daily chart. While the current momentum indicates weakness, a firm close above 100-DMA may help the index regain positive strength, following which a rally towards 50-DMA is likely. Read more