Market Movers: Surging refining margins take Chennai Petroleum, MRPL on a ride

Even as sections of the market have been struggling, there is one sector that has surprised everyone. Shares of refinery companies including Chennai Petroleum, Oil India, MRPL, and even Reliance Industries have seen massive buying.

The buying has come on the heels of rising refining margins. The benchmark Singapore gross refining margin (GRM) has jumped to a record high of $25.2/barrel, which bodes well for Indian refiners, said analysts.

Management of some companies have guided for a bumper year ahead.

On Thursday, MRPL rose 2 per cent to Rs 120.45, Chennai Petroleum 1.24 per cent, Oil India 6 per cent, Reliance Industries 3 per cent, BPCL 3 per cent and HPCL 3 per cent. Some of these stocks also hit their 52-week highs.

IEX surges 5%
Shares of India Energy Exchange (IEX) jumped 5 per cent to Rs 185 after Central Electricity Regulatory Commission (CERC) in an order on long- duration contracts allowed IEX to sell contracts up to 3 months.

Currently, the exchange is allowed to sell contracts for a period up to 11 days.

Now, IEX can introduce monthly and quarterly contracts, said ET Now in a report. Based on demand, they might consider half-yearly and yearly contracts as well.

Eight in eight
Shares of Life Insurance Corporation (LIC) of India record eighth straight loss in as many days, plunging to all time low levels. The stock has lost a quarter of its value since it got listed on the bourses.

Analysts have been lukewarm on the prospects of the stock with a neutral stance. Their targets on the stock have also been underwhelming.

On Thursday, it closed down at Rs 721.95, falling 2.17 per cent. Earlier in the day, it hit a low of Rs 720.05.