Macquarie Upgrades Petronet LNG, Favors HPCL Amidst Oil Market Volatility

• Macquarie upgraded Petronet LNG to 'Outperform' with a price target of ₹310, citing improving fundamentals and a favorable pricing outlook.
• The brokerage maintains a constructive view on Indian oil marketing companies (OMCs) despite global uncertainties, expecting lower natural gas prices in FY27-FY28.
• Macquarie prefers HPCL among OMCs, and GAIL in midstream, with MGL over IGL in downstream gas distribution.
• JPMorgan downgraded HPCL to 'Neutral' due to valuation concerns and potential earnings risks from the Rajasthan refinery, but maintained 'Overweight' on BPCL and IOCL.
• HPCL, BPCL, and IOCL shares were trading lower on Friday, January 23, reflecting market reactions to brokerage views and broader trends.

Why It Matters: Macquarie is bullish on Petronet LNG and HPCL, anticipating benefits from softer commodity prices despite market volatility.