Know why state-run oil companies are doing well

Shares of state-run oil marketing companies -- Indian Oil, HPCL and BPCL -- were in a strong uptrend on expectations that the ongoing reforms in the oil sector will see complete fruition in about a year's time. Meanwhile, Japanese brokerage firm Nomura said it hoped earnings at such companies would grow about 50-130 percent thanks to the government loosening its firm grip on the sector.

Nomura raised its target price for Indian Oil to 515 rupees from 450 earlier, citing expectations of higher efficiency, diesel deregulation, cut in LPG subsidy among reasons why the petrochemicals sector now looks to be a fundamentally sound investment bet. improvements.

Indian Oil gained 5.4 percent to 412.70 rupees. Hindustan Petroleum surged 5.3 percent to 778 rupees and BPCL rose 1.3 percent to 900 rupees. All three stocks figured in the top gainers list in the futures and options space as well.
(Image credit: Indiatimes)