BPCL, HPCL rally 3-4% as Morgan Stanley sees tailwinds for refiners
Overall oil prices corrected nearly 68 percent from its 2020 highs seen in early January.
March 30, 2020 / 01:51 PM IST
Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL) rallied 2.6 percent and 3.7 percent, respectively, intraday on March 30 after Morgan Stanley said both were its top picks. IOC also gained 1.75 percent.
"We see significant tailwinds for refiners beyond the challenges of the shutdown. Hence we have overweight rating on IOC, BPCL and HPCL," said the global brokerage.
However, the lockdown would result in a 6-9 percent impact to FY21 earnings, it added.
Morgan Stanley though cut its price target on IOC to Rs 127 (from Rs 136 per share), BPCL to Rs 517 (from Rs 550) and HPCL to Rs 246 (from Rs 283).
The fall in oil prices was a major supportive factor for refiners as it is the raw material for them. International benchmark Brent crude futures dropped 8.7 percent to $22.76 a barrel today, the lowest level since October 2002.
Oil prices have corrected nearly 68 percent from its 2020 highs seen in early January.
HPCL was trading 0.47 percent higher at Rs 170.60, BPCL up 1.56 percent at Rs 283.25 and IOC up 0.26 percent at Rs 77.15 on the BSE at 13.30 hours IST.Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.