Oil Giants Face Shock Downgrade: Is a Hidden Crisis Looming for HPCL, BPCL, IOC?

Overview

Brokerage firm Investec has downgraded Hindustan Petroleum Corporation Ltd. (HPCL), Bharat Petroleum Corporation Ltd. (BPCL), and Indian Oil Corporation Ltd. (IOC) to 'sell' from 'hold'. The firm warns that investors are overlooking a significant risk: weakening marketing margins, particularly for diesel, which could severely impact profitability despite strong refining margins.