BPCL shares surged 2% after HSBC reaffirmed its ‘buy’ rating on Indian oil marketing companies (OMCs). The brokerage highlighted that the recent market correction has pushed these stocks below their historical average valuations, making them attractive investment opportunities.
Despite short-term concerns, HSBC remains optimistic about the sector’s fundamentals. Key risks include weakness in the Indian rupee (INR) and lower gross refining margins (GRMs). However, positives such as declining crude oil prices, robust auto fuel demand, and limited government intervention in fuel pricing continue to support OMCs.
BPCL, in particular, stands out with a target price of ₹440, reflecting strong growth potential.
BPCL shares opened at ₹255.99 and hit a high of ₹262.66 before dipping to a low of ₹254.35. The stock remains well below its 52-week high of ₹376.00 but above the 52-week low of ₹234.01.
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