What is your outlook for OMC stocks like BPCL and IOCL in the light of the crash in oil prices to such low levels?

In fact, many of these OMC stocks are likely to be in some trouble due to a sharp fall in oil prices globally. They are expected to record huge inventory losses in the fourth quarter due to depletion in value of inventory. Even ONGC and RIL could take a hit as lower oil prices will negatively impact their realizations. Gross refining margins (GRM) are expected to drop to a multi-year low with RIL GRMs below $8/bbl. Between IOCL, HPCL and BPCL, the inventory losses are expected to be to the tune of Rs.33,000 crore. That is certainly huge.