Forget crashing Sensex, did you invest in these companies? They have defied negative trends
There was a sudden dip in faith when it came to investing in oil & gas companies, after all it was just last week only when major OMCs touched a new low.
As usual, the Indian markets continued their bloodbath on Dalal Street. Today was no different and in fact, today was an even bleaker day for Sensex, which just lost over 1000 points in early trade. However, even as mostly everything was down on Sensex, one sector roaring higher and defying the negative trends in markets. To cut the story short, it was the oil and gas sector, which turned into a massive money-making pool for investors. There was a sudden new-found faith that was generated in investors when it came to investing in oil & gas companies. This was despite the fact that only last week major OMCs had touched a new low!
If you are among those investors who did not take advantage of the fact when OMCs like HPCL, IOCL and BPCL hit their all-time low, then this is your regret moment. In fact, if you had purchased these companies' shares even last week, you would have made some substantial short term gains.
Today, the S&P Oil & Gas index surged by a massive 631 points or 5.03% with an intraday high of 13,150.60. However, the index ended at 12879.56 above 359.94 points or 2.88%. But one should definitely admire the performance it gave against all odd natures.
On this index, state-owned HPCL turned out to be the best performer by soaring over 19% with an intraday high of Rs 215.4 per piece, before ending at Rs 207.15 up 14.70%.
HPCL was joined by other OMCs like Indian Oil taking second spot by gaining nearly 8% with intraday high of Rs 134, before finishing at Rs 131 per piece up 5.39%. Meanwhile, BPCL share price jumped over 7% with an intraday high of Rs 284.80 per piece, however, completed at Rs 278.65 per piece up 5.11%.
Another state-owned company, ONGC, which is also the largest producer, followed in generating similar gains. It touched an intraday high of Rs 159.60 per piece rising by 7.36% overall in today’s trading session. However, the company ended at Rs 152.90 per piece up 4.40%.
These four stocks were the same one that touched an all-time low on October 05, after government slashed excise duty on fuels, while forcing the OMCs to absorb Re 1 per litre cut in petrol and diesel prices, which are at new heights.
Making this announcement in a press conference, Finance Minister Arun Jaitley said on October 04, "We are writing to the state government that as the central govt is cutting Rs 2.50 on both petrol & diesel, they do the same.”
Following the announcement, HPCL cracked to a 52-week low of Rs 165.45, while IOCL of Rs 105.65, BPCL of Rs 105.65 and ONGC of Rs 212.95.
Those investors who took the opportunity of this OMC downfall, would have managed to gain massive amounts today. It’s said that it’s all about grabbing the best moment when it comes to investing in equities. While that may not apply generally, this time it was truly a moment to take advantage of opportunities on offer.
Other gainers on this index today were - Gail India and Castrol India rising by nearly 4% each. However, they ended at Rs 350.10 and Rs 141.05 respectively.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
SBI Senior Citizen Latest FD Rates: What senior citizens can get on Rs 7 lakh, Rs 14 lakh, and Rs 21 lakh investments in Amrit Vrishti, 1-, 3-, and 5-year fixed deposits
SIP+SWP: Rs 10,000 monthly SIP for 20 years, Rs 25 lakh lump sum investment, then Rs 2.15 lakh monthly income for 25 years; see expert calculations
Tamil Nadu Weather Alert: Chennai may receive heavy rains; IMD issues yellow & orange alerts in these districts
SBI Senior Citizen FD Rate: Here's what State Bank of India giving on 1-year, 3-year, 5-year fixed deposits currently
Fundamental picks by brokerage: These 3 largecap, 2 midcap stocks can give up to 28% return - Check targets
Retirement Planning: Investment Rs 20 lakh, retirement corpus goal Rs 3.40 crore; know how you can achieve it
SIP vs PPF: How much corpus you can build in 15 years by investing Rs 1.5 lakh per year? Understand through calculations
04:48 PM IST