Oil marketing company stocks IOC, BPCL, and HPCL surged up to three percent Wednesday as JPMorgan flagged potential rebound prospects. The gains followed ceasefire announcements easing geopolitical tensions, with analysts suggesting stabilized crude supply dynamics could improve sector sentiment. IOC rose one percent to 148.70 rupees, BPCL advanced 2.4 percent to 307.45 rupees, and HPCL climbed 2.6 percent to 355.45 rupees. However, Kotak Institutional Equities maintained a cautious stance, reiterating sell ratings on all major OMCs. The brokerage warned that OMCs face significant cost pressures including firmer global crude benchmarks, elevated premiums, higher freight rates, and rupee weakness. With retail fuel prices frozen and government compensation often partial and delayed, earnings pressure remains substantial despite near-term price rebounds in the market.
