InvestorQ : Why did MRPL and Chennai Petro again rally on Tuesday after a gap?
Anamika Sodhani made post

Why did MRPL and Chennai Petro again rally on Tuesday after a gap?

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Angel dcosta answered.
2 months ago
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The two stocks viz. MRPL and Chennai petro were among the big gainers since February. However, in the last few days, the stock price of both these stocks had saturated. However, things did appear to have changed on Tuesday with both the stocks having rallied sharply as both MRPL and CPCL rallied by more than 8% in a single day. This was on the back of a sharp rebound in the prices of crude oil, which expanded the gross refining margin realization.

ON Tuesday, the prices of crude oil rallied sharply after it was clear that Saudi Arabia and UAE had little room to expand output. This would keep the oil market undersupplied. Pure oil refiners like MRPL and CPCL have been among major gainers in 2022 as they benefitted from sharply higher GRMs at record $22/bbl, but there was marketing margin constraints. That is why these stocks have managed to outdo the likes of IOCL and BPCL. RIL was also up.

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