Share of IOC were in demand after posting quarterly results. Commenting on the same, Amar Ambani, Head of Research, IIFL, said, “While OMCs have been plagued with uncertainties surrounding the subsidy payouts and witnessed sporadic cash flows, the scenario has improved considerably with the sharp fall in crude oil prices. This has given substantial headroom for the government to implement tough reforms such as free pricing of petrol and diesel. Also, the government is implementing a wider direct benefit transfer scheme for controlling the LPG and SKO under-recoveries. Refining margins should remain strong given the balanced demand supply equation globally and an expected revival in demand on the back of economic recovery in US and stability in Europe. IOC, having the largest market share in refining and marketing volumes, will gain substantially from the reforms”
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