Shares of Bharat Petroleum Corporation (BPCL), Hindustan Petroleum Corporation (HPCL), and Indian Oil Corporation (IOC) have experienced gains for the fourth straight day in trading.
Key Factors Driving the Gains
- BPCL’s Positive Outlook:
- Citi’s Buy Call: Citibank has issued a “Buy” recommendation for BPCL with a target price of ₹380 per share.
- Positive Catalyst Watch: Citi has initiated a 90-day positive catalyst watch for BPCL, indicating a favorable view on the stock’s performance in the near term.
Performance Highlights
- Bharat Petroleum Corporation (BPCL): Shares gained nearly 3% following Citi’s positive outlook and target price upgrade.
- Hindustan Petroleum Corporation (HPCL): Shares increased by 3% to ₹398.85.
- Indian Oil Corporation (IOC): Shares surged 1.26% to ₹172.23.
Market Performance Analysis
- Year-to-Date Outperformance: The three major oil marketing companies have outperformed the broader market by 17% to 37% so far in 2024. However, much of this outperformance was concentrated early in the year.
- Recent Underperformance: Over the past six months, BPCL has seen a decline of 9% to 21%, attributed to softer gross refining margins (GRMs) and weakened marketing margins following recent fuel price cuts.
