Global Economic and Political News and It's Impact:-
1. Crash in crude oil price will impact the sector
1.1. Refiners and Oil marketing companies like RIL should not be affected by the fall in crude oil prices because what matters for them is the gross refining margin (GRM). GRM is measured as the margin they generate for refining one barrel of oil. Since crude oil prices and the product prices move in tandem, the GRM remains stable.
However, thing may change because of the entry of the US into the oil export market. This is because the US exports will hit the global market in the form of oil distillates and not as pure crude. And any fall in GRM is bad news for oil majors like Reliance. The situation is similar for oil marketing companies (OMCs). Matters are more complicated in India because the public sector OMCs are still hamstrung by government interference.
1.2. Upstream oil companies like Crain India,GAIL have reacted negatively to the fall in international crude oil prices.So should you jump into buy them now? Most experts feel it is too early to get into bottom fishing and investors need to be on the sidelines for the time being. This is because the equities have a multiplier effect and therefore, the losses of commodity stocks are usually higher than the actual cut in commodity prices. However, the cut in Indian upstream oil companies, as of now, are less compared to the cut in international crude oil prices.
1.3. Downstream companies like Paints(Asian,Barger),Petrolium FMCG(HUL,Supreme,Astral) will suffer some inventory loss due to lower crude oil price but in long term it's profit margin will grow. Hence good time to buy this stocks looking at the inventory turnover ratio.
Indian Economic and Political News and It's Impact:-
1. RBI Rate Cut
As we all know RBI has cut the repo rate by 25 bps i.e. not it will br 7.25% though it is too little and too late hence we can expect more rate cut in near future supported by strong economic growth and specially depend on budget of 28th feb. Though market has already enjoyed this and companies like HDIL,India bulls in real est, GIC,Gruh,Canfin in Home Finance,DCB,ICICI,SBI,HDFC in Banks are really bullish as of now.
New Deals and It's Impact:-
Market Outlook:-
Market will remain bullish backed by RBI rate cut and upcoming quarterly reports from some good companies [Supreme,Tata Elxsi]in this week.
Big Bulls Entry & Exit:-
1. Crash in crude oil price will impact the sector
1.1. Refiners and Oil marketing companies like RIL should not be affected by the fall in crude oil prices because what matters for them is the gross refining margin (GRM). GRM is measured as the margin they generate for refining one barrel of oil. Since crude oil prices and the product prices move in tandem, the GRM remains stable.
However, thing may change because of the entry of the US into the oil export market. This is because the US exports will hit the global market in the form of oil distillates and not as pure crude. And any fall in GRM is bad news for oil majors like Reliance. The situation is similar for oil marketing companies (OMCs). Matters are more complicated in India because the public sector OMCs are still hamstrung by government interference.
1.2. Upstream oil companies like Crain India,GAIL have reacted negatively to the fall in international crude oil prices.So should you jump into buy them now? Most experts feel it is too early to get into bottom fishing and investors need to be on the sidelines for the time being. This is because the equities have a multiplier effect and therefore, the losses of commodity stocks are usually higher than the actual cut in commodity prices. However, the cut in Indian upstream oil companies, as of now, are less compared to the cut in international crude oil prices.
1.3. Downstream companies like Paints(Asian,Barger),Petrolium FMCG(HUL,Supreme,Astral) will suffer some inventory loss due to lower crude oil price but in long term it's profit margin will grow. Hence good time to buy this stocks looking at the inventory turnover ratio.
1. RBI Rate Cut
As we all know RBI has cut the repo rate by 25 bps i.e. not it will br 7.25% though it is too little and too late hence we can expect more rate cut in near future supported by strong economic growth and specially depend on budget of 28th feb. Though market has already enjoyed this and companies like HDIL,India bulls in real est, GIC,Gruh,Canfin in Home Finance,DCB,ICICI,SBI,HDFC in Banks are really bullish as of now.
New Deals and It's Impact:-
Market Outlook:-
Market will remain bullish backed by RBI rate cut and upcoming quarterly reports from some good companies [Supreme,Tata Elxsi]in this week.
Big Bulls Entry & Exit:-
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