HSBC has reaffirmed its buy ratings on key oil marketing companies (OMCs) — Hindustan Petroleum Corporation Limited (HPCL), Bharat Petroleum Corporation Limited (BPCL), and Indian Oil Corporation (IOC). The brokerage notes that lower crude prices are expected to support profitability for OMCs, with refining spreads showing improvement since late October.
Additionally, auto fuel sales have rebounded following a muted performance in the past two months, providing a boost to the sector. HSBC highlights that strong marketing margins are helping offset weaknesses in gross refining margins (GRMs), positioning these companies favorably in the current market environment.
Disclaimer: This article is for informational purposes only and should not be considered as financial advice. Please consult a financial advisor before making any investment decisions.
