Privatization of Bharat Petroleum Corporation Ltd would promote competition
Bharat Petroleum Corporation Ltd is an Indian government controlled oil and gas company which operates two large refineries located in Kochi and Mumbai. The company is primarily operates in Refinery and Marketing activities along with the help of Exploration and Production of Hydrocarbons. The company is a regular importer of LPG mainly from the Middle East. The Government of India owns 52.98% in the company which has also awarded Maharatna status for the company.
The economic slowdown in the country along with the lockdown of industries due to the spread of Coronavirus that has caused companies operations to be suspended or shutdown for a 21-day period in the country has made it crucial for the government to sell its stakes in the company. The following chart of Ichimoku cloud indicator shows the trend of the stock to be bullish as the formation of green cloud indicates the bullish market sentiment for the stock. The formation of the green cloud is shown only for a short period which also indicates that the trend of the stock would depends on the market sentiment as the market opens. The head and tail of the candlestick formed previously shows that the stock has reached its high price of Rs.300 during the trading session which closed at Rs.278.75 displaying the stock’s volatility. There is a chance of reversal trend for the stock when the market sentiments are bullish for the stock as the trading session for the day starts.
There were reports that the state-owned oil company Saudi Aramco might bid for BPCL which is also in the verge of deciding on a potential investment in Reliance Industries oil-to-chemical business. The Saudi oil giant is also active in a raging crude oil price war between OPEC countries and Russia. The company has recently slashed its crude oil price for Asian region by $4-5 per barrel to boosts its supply in the market for the month of April.
The SuperTrend indicates that the downward trend for the stock as the outbreak of the COVID-19 globally has been rising which has led to the lockdown in the country. The operations of the companies have been halted which caused demand and supply disruptions globally leading to fall in the oil prices. The Stochastic RSI shows that the shares of the company are being oversold and there is a chance of price correction movements leading to an upward trend for stock.
The supply of LPG gas cylinders have gone up by 32% in the country for the company as the lockdown has caused panic booking situation in the country leading to an increase in the demand for the resources. The oil and gas companies in India have stated that there is no shortage of fuels and gas due to the outbreak of the Coronavirus as the public panics about the product shortages due to the lockdown.
The economic slowdown in the country along with the lockdown of industries due to the spread of Coronavirus that has caused companies operations to be suspended or shutdown for a 21-day period in the country has made it crucial for the government to sell its stakes in the company. The following chart of Ichimoku cloud indicator shows the trend of the stock to be bullish as the formation of green cloud indicates the bullish market sentiment for the stock. The formation of the green cloud is shown only for a short period which also indicates that the trend of the stock would depends on the market sentiment as the market opens. The head and tail of the candlestick formed previously shows that the stock has reached its high price of Rs.300 during the trading session which closed at Rs.278.75 displaying the stock’s volatility. There is a chance of reversal trend for the stock when the market sentiments are bullish for the stock as the trading session for the day starts.
There were reports that the state-owned oil company Saudi Aramco might bid for BPCL which is also in the verge of deciding on a potential investment in Reliance Industries oil-to-chemical business. The Saudi oil giant is also active in a raging crude oil price war between OPEC countries and Russia. The company has recently slashed its crude oil price for Asian region by $4-5 per barrel to boosts its supply in the market for the month of April.
The SuperTrend indicates that the downward trend for the stock as the outbreak of the COVID-19 globally has been rising which has led to the lockdown in the country. The operations of the companies have been halted which caused demand and supply disruptions globally leading to fall in the oil prices. The Stochastic RSI shows that the shares of the company are being oversold and there is a chance of price correction movements leading to an upward trend for stock.
The supply of LPG gas cylinders have gone up by 32% in the country for the company as the lockdown has caused panic booking situation in the country leading to an increase in the demand for the resources. The oil and gas companies in India have stated that there is no shortage of fuels and gas due to the outbreak of the Coronavirus as the public panics about the product shortages due to the lockdown.
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