Shares in Chennai Petroleum Corporation Ltd and Mangalore Refinery and Petrochemicals Ltd surged amid a rally in crude oil markets, fuelling optimism over refining earnings and margins.
Shares in Chennai Petroleum Corporation Ltd and Mangalore Refinery and Petrochemicals Ltd rallied sharply on Tuesday as a firmer crude oil market lifted sentiment across Indian refiners. Business Today reported that Chennai Petroleum rose 16.79% to a 52-week high of ₹1,449, while MRPL gained 11.94% to ₹182.80, with both counters attracting heavy volumes during the session.
Analysts said the move was being driven by expectations that higher global crude prices could support refining earnings through stronger gross refining margins, or GRMs, the gap between the value of petroleum products sold and the cost of crude feedstock. Kranthi Bathini, director of equity strategy at WealthMills Securities, told Business Today that the companies had delivered resilient first-quarter results and could benefit over the medium to short term if crude stays elevated.
The backdrop was a renewed rise in oil prices after hopes of a US-Iran deal faded, adding to concerns over supply routes through the Strait of Hormuz. At the latest check, Brent crude futures were up $2.03, or 2.31%, at $89.75 a barrel, while West Texas Intermediate rose $2.20, or 2.68%, to $84.33, according to Business Today.
From a technical standpoint, Ravi Singh, chief research officer at Master Capital Services, said both stocks looked firm on the charts. He suggested buying Chennai Petroleum around ₹1,340 with a target of ₹1,450 and a stop-loss at ₹1,310, while MRPL was seen facing resistance near ₹185 and support around ₹165. The move also fits a broader strengthening in refinery economics: Moneycontrol said Chennai Petroleum’s average GRM in fiscal 2025-26 climbed to $9.28 a barrel from $4.22 a year earlier, while MRPL has drawn support from its ability to process discounted heavy crude and from shifting regional fuel trade flows.
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