Oil marketing companies BPCL, HPCL and Indian Oil gained on Monday as global crude prices continued to fall.
Global oil prices edged lower on Monday, extending their recent losses. International crude prices posted their third consecutive weekly losses last week on expectations of increased exports from Iran following a deal to ease sanctions against the OPEC producer.
A fall in crude prices helps lower the subsidy burden of oil marketing companies.
BofA-ML has raised its target price on oil marketing companies, citing room for re-rating amid lower global prices.
The brokerage has raised target price for HPCL to Rs 1,125 from Rs 704, BPCL's target to Rs 1,186 from Rs 926 and IOC's target to Rs 558 from Rs 498.
With outlook for global oil prices weak, BofA-ML says that FY17 profit of oil marketing companies are likely to be their highest ever.
At 10:21 a.m., shares of Indian Oil were up 1.5 per cent, HPCL edged up 0.25 per cent and BPCL rose 0.50 per cent. In comparison, Nifty was down 0.42 per cent.
Global oil prices edged lower on Monday, extending their recent losses. International crude prices posted their third consecutive weekly losses last week on expectations of increased exports from Iran following a deal to ease sanctions against the OPEC producer.
A fall in crude prices helps lower the subsidy burden of oil marketing companies.
BofA-ML has raised its target price on oil marketing companies, citing room for re-rating amid lower global prices.
The brokerage has raised target price for HPCL to Rs 1,125 from Rs 704, BPCL's target to Rs 1,186 from Rs 926 and IOC's target to Rs 558 from Rs 498.
With outlook for global oil prices weak, BofA-ML says that FY17 profit of oil marketing companies are likely to be their highest ever.
At 10:21 a.m., shares of Indian Oil were up 1.5 per cent, HPCL edged up 0.25 per cent and BPCL rose 0.50 per cent. In comparison, Nifty was down 0.42 per cent.
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