With several planned expenses still in the pipeline, the government is now looking for measures to prevent a fiscal breach.
While cutting excise duty by Rs 1.50 per litre, the government had on Thursday asked Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) to absorb Re 1 per litre increase in fuel rates.
Although there has been a substantial correction in stock prices, we approach the current year with caution given the increasing global uncertainty, rising crude oil prices, growing agitation against higher petrol and diesel prices in domestic markets and government’s unwillingness to reduce taxes on fuel
The United Petroleum Front (UPF) had last Friday called for a one-day nationwide strike on October 13 to press for various demands including better margins, doing away with steep monetary penalties for not meeting the new marketing discipline guidelines and bringing petroleum items under GST.
They are expected to step up investments in upgrading refineries to meet cleaner fuel standards, improve yields and create flexible refinery configurations in product pipeline and gas infrastructure capacities, it said.
The decision of the OPEC countries to cut output in an effort to reduce global glut has created ripples in the oil market. But, HPCL's Chief, MK Surana believes prices will not rise substantially.
In today's trade the metal stocks shone on the back of institutional buying and Ashwani Gujral says that metals and oil marketing companies (OMCs) can be the stocks for this year.
State-owned oil firms, that are bearing the discount cost of 0.75 percent for cashless payments announced by the government in the wake of demonetisation, may urge the government to compensate for their losses.
"The decision is very clear. Consumers will not be burdened with Merchant Discount Rate (MDR). Retail outlets (petrol pumps) will also be kept out of its purview. Now it is between banks and OMCs how they share it," he said.
il Ministry is meeting with OMCs, the Finance Ministry, dealers, bankers to resolve MDR issue, said Dharmendra Pradhan, Oil Minister.
In an interview with CNBC-TV18 Gautam Sinha Roy said the impact of demonetisation will be felt more in rural facing, consumption inclined towards rural demand and real estate-linked sectors including building materials.
Steel and Mines Minister Prafulla Mallick handed over the cheque of Rs 500 crore to Chief Minister Naveen Patnaik.
Ramesh Damani, Member, BSE said that Sensex carries a great importance for the Indian economy. â€œThe story of Sensex is ingrained in our memory,â€ he said, adding that the BSE is the cathedral to capitalism. Sensex will be compounding at a rate of 15-16 percent as it has been doing so far.
Oil marketing companies may be in focus on steep hike in fuel prices. Petrol price is raised by Rs 1.34 a litre, fifth increase in two months. Diesel, too, is hiked by Rs 2.37 a litre on back of spike in global rates.
Gross refining margins in Q1 was at USD 9.98 per barrel from USD 10.77 per barrel in corresponding quarter last fiscal.
When asked about the new shareholders, Gupta hinted that it may be some new, non-financial player again, saying a payments bank is the start of differentiated banking and the stakeholders will also be from varied businesses.
In an interview to CNBC-TV18 Mayuresh Joshi of Angel Broking shared his reading and outlook on the market as well as on various stocks and sectors.
Southern Online Bio Technologies has won orders worth Rs 30 crore from oil marketing companies - IOCL, HPCL and BPCL - and the director finance, K Radha Krishna believes that there is a scope of supply extension till March 2017, which can get additional orders of Rs 60 crore.
The hike was long due and will be positive for upstream and oil marketing companies (OMCs) like Oil and Natural Gas Corporation, says RS Sharma, Former CMD, ONGC.
Entire oil marketing companies (OMCs) pack is buzzing on buyers' radar today with IOC and HPCL rising 7 and 8 percent respectively.
The OMCs are asking the government to increase price of petrol by 90 paise and diesel by Rs 2.
On BSE, BPCL went up by 5.91 percent to Rs 864.60, HPCL gained 2.40 percent to Rs 751.95 and IOC climbed 3.89 percent to Rs 403.60.