IOC surges to new 52 week high; Market cap crosses 2 lakh crore

Indian Oil Corp Ltd stock regained momentum today after being under pressure yesterday. The share price surged to a new 52 weeks high of Rs 428.40 intraday on the BSE, up 4.76% from its yesterday’s close of Rs 408.90. The traded volume peaked at 12:19 pm with 57,808,000 shares changing hands as the share price was on the verge of breaking the psychological level of Rs 420 as the market cap of the company surged beyond 200,000 crores.

In the last one week alone, IOC has gained more 11.17%, while since 13 April 2016, the share prices have almost doubled, rising more than 96% from Rs 208.23 to Rs 408.90. In comparison, the benchmark BSE S&P Sensex has lost about 1% points in the last one week but gained 15.67% in last one year period.

IOC along with the other two state-owned oil marketing companies, Bharat Petroleum Corp Ltd and Hindustan Petroleum Corp Ltd had opened this week on a high note with news abuzz that the companies are contemplating daily revision of retail fuel prices. The three companies have already announced a pilot project for the daily revision of fuel prices in five major cities, starting May 1, before a nationwide roll-out.

IOC has also been in news due to reports of it going ahead with the long-delayed expansion of its Paradip Refinery and inclusion of its shares in the benchmark NSE Nifty 50 Index. The company is also reported to have registered gross refining margins (GRMs) of USD 7.7 per barrel for 2016-2017, one of the highest in the last three years.

Earlier a Thomson Reuters report had stated that out of 32 analysts covering the stock, 28 had recommended “buy” or “strong buy” and only one analyst has recommended “sell” with the remaining three analysts recommending “hold”.

With the stock prices having achieved new highs, it will be interesting to see whether there will be some consolidation at these levels or will this rally continue.

Indian Oil Corporation