The decline comes after HSBC downgraded the oil marketing companies to ‘Hold’, while also cutting earnings estimates and valuation multiples.
The brokerage said higher crude oil prices are likely to impact the earnings of OMCs, as they could face marketing losses even if crude averages around $75 per barrel.
HSBC downgraded Indian Oil Corporation to ‘Hold’ and cut its price target to ₹150 from ₹200. Hindustan Petroleum was also downgraded to ‘Hold’, with the target price reduced to ₹360 from ₹620.
Similarly, Bharat Petroleum was downgraded to ‘Hold’, with the price target lowered to ₹340 from ₹470.
In contrast, HSBC maintained a ‘Reduce’ rating on Oil and Natural Gas Corporation but raised its price target to ₹240 from ₹200. The brokerage said that ONGC stands to benefit from higher crude prices, although potential policy risks could limit the possibility of supernormal profits.
According to Bloomberg data, 23 of the 34 analysts covering HPCL have a ‘Buy’ rating on the stock, while 20 out of 34 analysts tracking Indian Oil recommend ‘Buy’. For BPCL, 24 of the 33 analysts covering the stock have a ‘Buy’ rating.
Shares of Hindustan Petroleum are trading 2.02% lower at ₹361.30, while Bharat Petroleum shares are down 1.96% at ₹313.05. Indian Oil shares are trading 3.46% lower at ₹151.13. The stocks have declined between 9% and 28% so far in 2026.
