Threat or opportunity for investors?
According to market experts, this could be risky in the short term. Short-term investors should remain alert as refining and OMC stocks will remain volatile due to uncertain crude prices, impact of windfall tax and continued global tensions. At the same time, there can be a long term opportunity. Because fuel demand is continuously increasing in India, the government is keeping the supply and prices under control, the growth outlook of CGD (City Gas Distribution) and upstream companies is strong. There may be an opportunity to accumulate good companies in the fall.
Disclaimer: This article is for general information and educational purposes only. The information given in it is based on current trends. Do not take this as any kind of investment advice, financial consultation or recommendation. Investing in the stock market is subject to risks. Oil stocks can fluctuate rapidly due to the price of crude oil, global events and government policies. Before investing in any stock, definitely consult your financial advisor.