Oil stocks RIL, BPCL, IOC top Nifty losers after Saudi attack; what analysts say

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Updated: September 16, 2019 11:24:28 AM

Shares of oil majors RIL, BPCL, IOC plunged up to 3% on Monday morning, after a strike on a Saudi Arabian oil facility on Saturday removed about 5% of global supplies.

Share Market Live, Stock Market Live, Nifty Live, NSE live, BSE live, Live Market Update, Market Today, स्टॉक मार्केट, शेयर बाजार, Indian Share Market Live, Indian Stock Market LiveDrone attack on Saudi Aramco oil facilities on Saturday is estimated to impact 5 mln bpd of oil production.

Shares of oil majors RIL, BPCL, IOC plunged up to 3% on Monday morning, after a strike on a Saudi Arabian oil facility on Saturday removed about 5% of global supplies. RIL shares slumped more than 3% to hit Rs 1,188.50 on BSE. BPCL shares are down more than 5.5% to Rs 386.10 on NSE, while IOC shares are down 2.6% to Rs 127.60 to emerge among the biggest losers in Nifty. Global oil prices surged the most in 28 years On Monday morning. Brent futures jumped almost $12 a barrel in the seconds after the open on Monday, the biggest intraday advance in dollar terms since they were launched in 1988, a Bloomberg report noted. On the New York Mercantile Exchange, West Texas Intermediate contracts were frozen for about two minutes after the scale of the move delayed the market open, added the report.

Also read: Share Market Today | Live: Sensex extends losses after Saudi oil attack; RIL, BPCL, IOC plunge

Check live stock price: RILBPCLIOC

Taking stock of the development, Pritam Kumar Patnaik, Head Commodities, Reliance Commodities said that the Drone attack on Saudi Aramco oil facilities on Saturday is estimated to impact 5 mln bpd of oil production and further news that Saudi Arabia plans to shut down about half of it’s output after strike will have impact on the overall oil prices and global economy. “The impact of the same has been already witnessed on both NYMEX and Brent oil prices, which have rallied more than 10%. “With USA accusing the Iranian government of orchestrating the attack and Iran in turn threatening war, there by further destabilising the region at large and further impacting future supplies, the oil prices are expected to remain firm,” he added.

According to Arun Kumar, Market Strategist, Reliance Securities, the global development could lead to panic selling back home, leading the indices lower. “Indian equities is particularly sensitive to changes in crude prices and USDINR & these have adversely opened. We do expect incremental pain as the day progresses. Any selling pressure on Nifty 50 index below 10,950 is likely to lead to panic selling,”  he said.

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