2 Stocks That Gain Up To 20% In A Weak Market

In a weak market, when headline indices have tanked with Nifty seen down by over 1% at below 16,400, 2 of the stocks from the refining space have gained substantially i.e. by up to 20%. Shares of Mangalore Refinery and Petrochemicals and Chennai Petroleum gained 20% in intra-day trade on June 7, 2022.

MRPL is a Miniratna CPSE and the two shares from the pack have surged under the Ministry of Petroleum & Natural Gas. The 15 Million Metric Tonne Refinery is equipped with complex secondary processing units and a high flexibility to process Crudes of various API, delivering a variety of quality products.

The shares of both the refining companies are rising on robust business outlook. This is post the Asian benchmark referred as Singapore Gross Refining Margins scaled to its lifetime high of $25.2 per barrel. This in the earlier quarter was at $8.1 per barrel and now has surged past $20 per barrel in the first quarter of the ongoing fiscal year.

Also, as per reports, stock exchanges have revised circuit limit on these counters to 20% from 5% beginning today.