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.
Among railway PSUs, IRCON International was trading 1.54 per cent higher at Rs 191.20. RVNL also gained 0.4 per cent to Rs 416.70. NTPC Green Energy Ltd was flat at Rs 103. PFC added 0.84 per cent to Rs 410.
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.
Post a 20 per cent drop in its shares in six months, a few analysts said stock valuations are inexpensive and downside looks limited on the counter. They suggested a 'Buy' on the stock.
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.
BHEL today informed exchanges that it signed a memorandum of understanding (MoU) with Oil & Natural Gas Corporation Ltd (ONGC) to explore joint projects and collaboration in the area of new and renewable energy business.
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.
An analyst from Master Capital said that Hero MotoCorp has recently broken out of a double-top formation, supported by a notable increase in trading volumes, signaling heightened participation from fresh buyers.
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
Godfrey Phillips India (Rs 56 per share dividend), Vedant Fashions Ltd (Rs 8.50 per share), Natco Pharma (Rs 3 per share) and Mayur Uniquoters (Rs 3 per share) will be among stocks turning ex-dividend today.
ONGC share price: The stock rose 0.97 per cent to hit a new all-time high of Rs 344.60. It was last seen trading 0.08 per cent lower at Rs 341 today. At this price, the scrip has gained 66.14 per cent on a year-to-date (YTD) basis.