The election period from mid-April 2019 till now has turned fruitful for petrol and diesel prices. A Morgan Stanley research note highlights that retail fuel prices remained range-bound during elections, despite 5% rise in oil prices since April.
However, the note also reveals that unlike in the past they changed and even rose at times. Investors had viewed elections as a key overhang and margin/demand rise from recent trough should support multiples. And, searching the right stock in OMCs would be key benefactor for them.
According to the note, Retail fuel margins have declined in the past 15 days as adjustments in fuel prices have been slower than the rise in oil prices and weaker INS (vs USD). Read More