Shares of Petronet LNG plunged almost 5% to hit a contemporary 52-week low on the BSE at this time, March 20, even because the Indian inventory market rebounded after yesterday’s drubbing, amid bearish views from brokerages because the Middle East battle is anticipated to weigh on the corporate’s volumes.
The fuel inventory dipped 4.67% to ₹258.70, its lowest stage in a 12 months, following bearish views from brokerages. Petronet LNG shares have misplaced 19% up to now in March, placing them on monitor for the worst month-to-month decline in six years.
India, one of many world’s largest oil importers and customers, has been hit laborious by the US-Israeli war against Iran as power shipments through the Strait of Hormuz had been disrupted. The Strait accounts for 20% of the worldwide crude oil passage.
Why are Petronet LNG shares falling?
Against this backdrop, brokerages have shared their bearish views on the inventory, with Japan-based Nomura slashing the goal worth for Petronet LNG shares, based on media reviews.
CNBC TV-18 earlier at this time reported that Nomura, whereas sustaining a ‘purchase’ name on the fuel inventory, slashed the goal worth to ₹340 from ₹370 earlier, citing impression on volumes and earnings amid the continuing battle within the Middle East.
Qatar has introduced a drive majeure amid an assault on its amenities, which is a big setback for India as New Delhi is the second-biggest consumer of the West Asian nation.
Total LNG export quantity declined to eight.6 MMT for the week ended March 7 and additional to 7.8 MMT for the week ended March 14, in comparison with a median of 9.6 MMT per week in February 2026. This decline was largely pushed by a pointy drop in volumes from Qatar, which fell from 1.7 MMT to 0.06 MMT.
India consumed 33.15 million metric tons of liquefied petroleum fuel, primarily used as cooking gas, final 12 months, with imports accounting for about 60% of demand, based on knowledge from Reuters. Typically, about 90% of LPG imports come from the Middle East.
Nomura believes that Indian provides might resume as soon as the present drive majeure is lifted, as India-specific trains weren’t affected.
Additionally, Systematix Group opined that with the latest strike at power amenities, together with upstream and refining belongings throughout the Gulf international locations, an extra rise in costs and disruption of quantity is probably going, which can impression India. It added that repairing and restarting the provision may additionally take an extended time which might deliver a long-term ache to the sector.
It has eliminated Petronet LNG from its prime decide.
Disclaimer: This story is for instructional functions solely. The views and proposals made above are these of particular person analysts or broking corporations, and never of Mint. We advise buyers to test with licensed consultants earlier than making any funding choices.
