New Delhi: Essar Oil Ltd, owned by the country’s Essar Group, gained for the fifth straight day in Mumbai, its longest winning streak in almost two months.
The shares rose 8.7% to Rs129.60 at the close after climbing as much as 14%. That follows a 48% advance on 6 April. Essar Oil has added 81% in the past five sessions, the longest stretch of gains since the five days ended 10 February.
There is no reason for a standalone refiner’s share price to rise so sharply as margins are low, said Vinay Nair, an analyst at Mumbai-based Khandwala Securities Ltd. More refinery capacity coming up in Asia and less demand could depress margins further.
The refiner is not considering a proposal to delist the company’s shares, Essar Oil said in the statement, which was a response to a query from the exchange seeking verification of media reports.