Markets movers: Oil Refinery stocks rallied as the market fell

Chennai Petroleum Corporation Ltd, Mangalore Refinery & Petrochemicals Ltd, and AGI Infra Ltd surged higher in today’s session.

S&P BSE Sensex opened 0.54 per cent down and continued to trade in the red to close at 1.02 per cent for the day at 55107.34. The reason for today's weak trading session was due to traders reducing their open market positions to avoid huge volatility in tomorrow's session fueled by the RBI monetary policy meeting. Oil & Gas and Auto were the two top sectors outperforming today. 

Two of the oil refinery stocks were the highlight of the day. Chennai Petroleum Corporation Ltd and Mangalore Refinery & Petrochemicals Ltd closed 14.74 per cent and 19.72 per cent, respectively in day’s trade. Both stocks were up for the third consecutive day. These refinery stocks are showing continuous strong upward momentum as the Singapore gross margin index (SGM) surged at a record number of $25.2 per barrel, indicating a strong demand for oil refineries globally. Also, Q4 results were excellent for both the companies. 

CPCL is a small cap company having a market capitalization of Rs 5,487 crore. The stock is trading at 4.09x PE. MRPL belongs to the S&P BSE 500 index with market capitalization of Rs 18,989 crore. Currently, the stock is trading at 5.2x PE. 

The stock which was one of the Top Gainers in BSE’s group ‘B’ was AGI Infra Ltd. AGI Infra Ltd spiked 18.6 per cent to Rs 410.3 in today's trade. The rally in the stock price was fueled by a good set of figures for Q4.   Net profit of AGI Infra rose 224.77% to Rs 10.75 crore in the quarter ended March 2022 as against Rs 3.31 crore during the previous quarter ended March 2021. Sales rose 77.81% to Rs 52.81 crore in the quarter ended March 2022 as against Rs 29.70 crore during the previous quarter ended March 2021. AGI Infra Ltd has a market capitalization of 500 crore and its shares are trading at 17.28x PE.