LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Business News » India News

Here is why oil marketing companies plunged in today's trade

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
Here is why oil marketing companies plunged in today's trade
Written By: ZeeBiz WebTeam
Updated: Wed, Apr 11, 2018
02:18 pm
ZeeBiz WebDesk
RELATED NEWS
Oil marketing companies continue to hold petrol, diesel prices Oil marketing companies continue to hold petrol, diesel prices
Oil marketing companies hold fuel prices, diesel price same for 9th day Oil marketing companies hold fuel prices, diesel price same for 9th day
Exclusive: There will be no issue with supply of diesel, petrol or LPG, HPCL CMD says Exclusive: There will be no issue with supply of diesel, petrol or LPG, HPCL CMD says
Indian Oil’s CapEx for FY20 is Rs 25,000 crore: Sanjiv Singh, Chairman Indian Oil’s CapEx for FY20 is Rs 25,000 crore: Sanjiv Singh, Chairman
Ahead of general elections 2019, Modi govt allows OMCs to open over 55,000 new fuel stations Ahead of general elections 2019, Modi govt allows OMCs to open over 55,000 new fuel stations

HPCL, BPCL and IOC share prices slumped up to 8 per cent on Wednesday on reports that govt will ask them to absorb price hike on account of rising global crude prices. Reacting to the news, HPCL slipped as much as 8.26 per cent, IOC 7.6 per cent, while BPCL shed 7.34 per cent on the NSE even as Nifty index traded positive, ruling above 10,400 mark. HPCL, BPCL and IOC were the leading losers on the 50-share index.   

The government may ask oil marketing companies (OMCs) to absorb Rs 1 rupee per litre price hike, reported Bloomberg, quoting sources. The government has ruled out excise duty cut to lower oil prices, Bloomberg report added.

"I would advise not shorting the stocks of OMCs as of now, but this is not the time to dip into it even as valuations go lower. Investors should go for oil exploration companies and stay away from OMCs in the short-term," said Ashish Maheshwari, Director – Blue Ocean Strategic Advisors to Zee Business. 

Oil prices eased away from their 2014 highs with Brent crude futures down at $70.78 per barrel in today's trade after gaining over 3 per cent on Tuesday to hit its four-year high.  

If the government doesn't reduce excise duty on Brent, OMCs may witness some pressure on their marketing margin, maintaining which will be difficult. If marketing decreases by 0.5 per litre, earnings per share of the stocks may take a hit of 12 per cent to 21 per cent. Meanwhile, oil subsidy has remained most in last 13 quarters coming in at Rs 9,100 crore in Q4FY18. 

The fact that state assembly elections are lined up in 5 states in 2018, increasing oil prices to protect margins appears difficult for OMCs.   

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Oil Marketing Companies
RELATED NEWS
Oil marketing companies continue to hold petrol, diesel prices Oil marketing companies continue to hold petrol, diesel prices
Oil marketing companies hold fuel prices, diesel price same for 9th day Oil marketing companies hold fuel prices, diesel price same for 9th day
Exclusive: There will be no issue with supply of diesel, petrol or LPG, HPCL CMD says Exclusive: There will be no issue with supply of diesel, petrol or LPG, HPCL CMD says
Indian Oil’s CapEx for FY20 is Rs 25,000 crore: Sanjiv Singh, Chairman Indian Oil’s CapEx for FY20 is Rs 25,000 crore: Sanjiv Singh, Chairman
Ahead of general elections 2019, Modi govt allows OMCs to open over 55,000 new fuel stations Ahead of general elections 2019, Modi govt allows OMCs to open over 55,000 new fuel stations

LATEST NEWS

Citi on Mutual Funds: UTI AMC is top pick; sector may deliver Healthy (15%) AUM / profit growth likely

Indian Logistics and Supply Chain Trends 2021 II Details Explained

Google Play Store removes 453 digital personal loan apps in India since Dec 28 in crackdown against unfair online lending | #OperationHaftaVasooli

EPF vs NPS - Budget 2021 Expectations: How FM Sitharaman can make National Pension System money-making machine for employees

Xiaomi shares fall 10% after US blacklists smartphone maker | Check company's reaction here

PUBG Mobile India launch date: Rumours rage with this announcement; will the Battle Royale Game make comeback? Check latest report

Indian Railway Finance Corporation (IRFC) IPO Price Band, face value, Issue size, Bid lot - All EXPLAINED in brief

Apple India Store announces Rs 5,000 cashback offer, no-cost EMI

HDFC Securities highlights that 14563 and 14256 is the resistance / support for the Nifty in the near term

Samsung Galaxy 21, Galaxy S21+ and Galaxy S21 Ultra launched | Check Price, Camera, Specifications, Pre-booking and Cashback offers

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved