Oil Sector Stocks: A global brokerage firm says that the refining profitability of Indian oil marketing companies is strong, due to which there are good opportunities in some companies. These include stocks of companies like IOC, BPCL and HPCL. Know the target price..
Best Oil Stocks to Buy: Brokerage firm UBS has issued a positive outlook for India’s Oil Marketing Companies (OMCs). Strong refining profitability and firm middle-distillate spreads are creating huge opportunities for Indian refiners, the brokerage said. According to UBS, Singapore benchmark margins currently do not fully reflect the earnings of diesel-heavy refiners, which are actually making better profits. The brokerage firm also noted that India’s diverse crude sourcing network mitigates the impact of global geo-political fluctuations. This means that India’s refiners are likely to have a more stable performance than global peers. The brokerage has also released its ratings on some oil companies.
IOC Share Price Target
UBS has given better ratings to IOC and BPCL than HPCL primarily based on current valuations and margin visibility. Buy rating has been maintained on this stock. Its target price has been given at Rs 190, which fell 0.35% and closed at Rs 168.73 on Thursday, November 20.
BPCL Share Price Target
Brokerage firm UBS has also given buy rating on the shares of Bharat Petroleum Corporation Limited (BPCL). Its target price has been given at Rs 425. On Thursday, the stock closed on the green mark with a slight gain at Rs 365.85.
HPCL Share Price Target
UBS is also bullish on Hindustan Petroleum Corporation Limited (HPCL) shares. The brokerage has given a buy rating on it. Its target price has been given at Rs 540. On Thursday, the stock closed at Rs 478.90 with a slight gain. UBS expects refining margins to remain strong in the near term due to middle-distillate demand and stable crude sourcing.
How was the performance of the stock market today?
Amid positive global cues, stock market benchmark indices closed with decent gains on Thursday, November 20, led by gains in select index heavyweights including HDFC Bank and Reliance Industries. During the session, Sensex reached its 52-week high of 85,801.70 and Nifty 50 reached its one-year high of 26,246.65. Maintaining gains for the second consecutive session, the Sensex closed at 85,632.68, up 446 points or 0.52%, while the Nifty 50 closed at 26,192.15, up 140 points or 0.54%. However, midcap and smallcap indices underperformed and closed in the red. The BSE Midcap index fell 0.13%, while the Smallcap index declined 0.17%.
Disclaimer: The information given in this article is for educational and investment awareness purposes only. There is no advice to buy, sell or invest in shares. Investing in the stock market is subject to risks. Before making any investment, definitely consult your financial advisor.