The Indian Chemical stocks hit by rising Crude Prices

Recently, world’s largest oil producers gathered in Vienna to try to agree a production cut that could be bigger than expected, taking oil pricesto a jump of more than eight per cent and to a five-week high. Oil prices surged 4 percent on yesterday, with Brent crude at its highest in almost 16 months, extending gains after OPEC and Russia settled to restrict output to reduce the global supply glut more quickly. This, in turn, has pulled down the entire Chemical Sector on its feet as Crude oil is a major raw material used in making chemicals.

OPEC consists of 13 oil producing countries and is of strategic importance to the Indian subcontinent. It accounts for 85% and 94% of India’s crude oil and gas imports respectively. The Organization of Petroleum Exporting Countries (OPEC) started its ministerial conference on 30th November 2016, to adopt measures to reduce excess supply to drive petrol prices upward. The idea is to limit the production of Crude to a level between 32.5 and 33 million barrels per day, starting the month of January 2017, from the record volume of 33.64 million barrels per day reached in the month October.

Chemical Stocks Overview:

IGPL: IG Petrochemicals is a Multibagger recommendation by Dynamic Levels. On 2nd December 2016, i.e. today, IGPL share price declined 5 per cent on the NSE trading counter. The stock had opened at Rs. 244, below its previous close of Rs. 245.45. IGPL’s opening price has been its intraday high so far in the first half of the trade.

NOCIL: NOCIL is yet another Multibagger from the Chemical Sector. NOCIL share price has declined 5 per cent to trade at the intraday low of Rs.66.55. At 11:45 Am, the stock was trading at Rs. 66.95, down by 4.49 per cent. It had opened at Rs. 68.70 against its previous close of Rs. 70.10. The stock has gone as high as Rs. 68.90 so far.

Bhageria: Another Multibagger stock from the Dynamic Levels that belongs to the Chemical Sector. Bhageria share price also slipped 5 per cent and traded at the so far intraday low of Rs. 364.60. The stock had opened at Rs. 382 and that had been its intraday high as yet. It had previously closed at Rs. 383.75.

Phillips Carbon: Phillips Carbon is also a Multibagger stock identified by Dynamic Levels from the sector. Phillips Carbon share price declined 4.41 per cent to trade at the intraday low of Rs. 216.50. At 11:45 Am, the stock was trading at Rs. 218.10, down by 3.71%. The stock has opened at Rs. 221.95 as compared to the previous close of Rs. 226.50.

Kiri Industries: This Multibagger from Dynamic Levels have slipped 4.22 per cent and traded at the intraday low of Rs. 266.10. Kiri Industries share price had opened at Rs. 273.20 against its previous close of Rs. 277.85. The stock went as high as Rs. 274.70 intraday.

It is evident that the rising Crude prices have hit the entire chemical index. The stocks have slipped 4 per cent to 5 per cent today while Nifty share price traded at 8113 level with the decline of 0.98 per cent. It is a wait and watch situation for the industries that use Crude as a major raw material but a moment of rejoice for the oil companies.

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