Refiners perform well; gas companies' earnings decline

Oil marketing companies like Reliance and Indian Oil are expected to perform well in Q1, driven by strong refining margins and potential tariff increases. This is according to a preview of the sector's financial results. Analysts predict that gas companies such as GAIL and ONGC will likely see earnings declines due to reduced demand and production challenges, contrasting with the positive outlook for refiners. HSBC Global Research has a positive outlook on OMCs. The report highlights volatile crude oil prices and fluctuating refining margins during the quarter, impacting the sector's performance. Despite these challenges, OMCs are expected to benefit from strong marketing margins.