IGL shares led the fall, tanking 4.11 per cent to Rs 194.80. It was followed by OMC stocks BPCL, HPCL and IOC, which declined 3.86 per cent, 2.80 per cent and 2.20 per cent, respectively.
OMC stocks: Emkay Global said it favors HPCL, followed by BPCL, and IOCL in that order, and reiterated 'Buy' with target prices of Rs 500, Rs 400 and Rs 170, respectively, on the three stocks.
OMC stocks: JM Financial said the risk-reward for OMCs namely BPCL, HPCL and IOC is not favourable given the PSUs' aggressive capex plans and as valuations are 20-30 per cent above historical averages.
HPCL jumped 4 per cent to Rs 367.50. BPCL climbed 2.7 per cent to hit a high of Rs 281.80. IOC advanced 2.06 per cent to Rs 131.
IOCL shares have relatively underperformed HPCL and BPCL recently, but the OMC entails a higher inventory risk. BPCL is fundamentally the strongest. HPCL’s Vizag expansion and modernisation project is expected to be complete by FY25-end.
OMC stocks: ICICI Securities maintained its 'Buy' on IOC, BPCL and HPCL, with revised price targets of Rs 197, Rs 421 and Rs 470 per share, respectively.
The report from SMC Global Securities said that L&T Finance is focused on boosting customer acquisition by developing a strong sales funnel and expanding its product offerings.
For upstream oil PSUs, in the current windfall regime, realisations are not impacted until the price of $75 a barrel. However, declines are sharp below $75 per barrel. Typically, the lower oil prices are positive for OMCs, Kotak said on September 12.
With a surge of 152% YTD, Oil India is the top gainer; its shares soared to Rs 627.10 on September 6 from Rs 248.23 on December 29, 2023
HPCL shares fell 2.72 per cent to hit a low of Rs 339.75 on BSE. The HPCL board had declared one bonus share for every two shares held.
HPCL share price: The stock surged 4.70 per cent in Monday's trade to hit a high of Rs 500.95. The multibagger oil PSU has gained more than 100 per cent in the past one year.