What Decides the Indian Petroleum PSU's Stock Prices?

Abstract

The study of Indian Petroleum PSU’s stock prices is intended to analyzee present performance of petroleum PSU’s and predict the next 4 years future. This study has used the secondary published data of oil companies, IMF reports and stock market participants. The article has made an attempt to identify the inflencing factors on international crude oil prices and its effect on Indian petroleum PSU’s financial performance. This analysis involves analysis of economic indicators, industry analysis, financial ratios of the selected PSU’s. These studies are helpful for investment decisions. This research observed that crude oil prices are directly correlated with the world GDP, OPEC decisions and stability in the gulf region. Substitues of petroleum products has started to make certain impact but it is limited at this moment. If the prices of crude oil increases then petroleum exploration companies such as ONGC, OIL makes profit else petroleum refining and distribution companies such as BPCL, HPCL, and IOCL makes profit and this profit will be dependent on government subsidy decisions.