Equity Alert: Oil retailers down 4-7% on crude rise, rupee weakness
Wednesday, Sep 17
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Equity Alert: Oil retailers down 4-7% on crude rise, rupee weakness
MUMBAI--1:25PM--Oil retailers' shares were down 4-7% on higher
global
crude oil prices and depreciation of the rupee, dealers said.
Bharat Petroleum Corp fell 7%, while Hindustan Petroleum Corp and
Indian
Oil Corp were down around 4% each.
A technical analyst said, the stocks look weak on charts intra-
day.
Support for BPCL is seen at 332 rupees, while for HPCL and IOC are
seen at
236 rupees and 392 rupees.
"The weakening rupee has been a dampener for oil marketing
companies, as
it would mean a higher import bill, offsetting the potential for under
recoveries to come significantly lower due to fall in oil prices,"
said Vinay
Nair, analyst at Khandwala Securities.
At 1:10PM, crude oil was trading at $94.46 a barrel on NYMEX, up
$3.31
from Tuesday, while the rupee was at 46.36 per $1 against 46.92
Tuesday.
Nair said, "If rupee remains at 46.00-46.50 (per $1) and if oil
rises
from here to $100-105/bbl, the under recoveries would be nearly the
same as
what they were when oil was at $123-124/bbl before the government's
fuel
revision."
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