www.rupeedesk.in
Stocks of state-owned oil marketing companies may remain subdued next week as investors will wait for the Reserve Bank of India's policy review Tuesday, and for companies' Jul-Sep earnings. The market trend will dictate the movement in stocks of Indian Oil Corp, Bharat Petroleum Corp, and Hindustan Petroleum Corp. If global prices of crude oil stay on their downward trajectory, and the rupee remains stable against the US dollar, these shares could see some upside. After declining sharply to 53.8400 a dollar last week, the rupee recovered this week and ended at 53.5600 a dollar yesterday. The price of the Indian basket of crude oil declined by almost $3 a barrel from last week to $107.33 Thursday.
The three companies will detail their Jul-Sep earnings early November. Stocks of upstream companies--Oil and Natural Gas Corp, Oil India, and GAIL (India)--are likely to remain muted before the companies' release their Jul-Sep earnings. Stocks of Reliance Industries may continue to face downward pressure amid weakness in the market. If the RBI cuts the repo rate or the cash reserve ratio, the trend in the market may turn bullish, which could boost the company's stocks.
