Despite profitability overhang\, OMC stocks remain attractive bets

Despite profitability overhang, OMC stocks remain attractive bets

Analysts expect the marketing margin concerns, most of which are already priced in, to recede post elections, and say valuations are now attractive

Ujjval Jauhari  |  New Delhi 

Stocks of oil marketing companies (OMCs) continue to remain volatile, thanks to the volatility in the underlying crude oil prices post US sanctions on Iran. Brent crude now trades near $69.5 a barrel, up significantly from the $52-a-barrel mark seen at the start of 2019. Accordingly, the Indian crude basket has also risen.

The Indian crude basket is the weighted average of Dubai, Oman and Brent crude oil prices. It is used as an indicator of the price of crude imports into India and the index is tracked for examining domestic fuel prices. While the retail prices of fuel (petrol and ...

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Read our full coverage on Crude Oil
First Published: Mon, May 06 2019. 16:12 IST