- Systematix Institutional Equities remains cautious on the energy sector amid Middle East conflict risks
- Recent strikes on Gulf energy facilities may spike crude prices and disrupt supply volumes
- Repairing damaged facilities could be prolonged, pressuring the energy sector further
NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Systematix Report
Systematix Institutional Equities has maintained a cautious view on the energy sector amid rising uncertainty surrounding the escalation of the Middle East conflict. The brokerage notes that recent strike at energy facilities including, upstream and refining assets across the Gulf countries could lead to a further spike in crude prices and disruption in supply volumes.
Such developments are likely to have a meaningful impact on energy‑deficient economies like India.
Systematix highlights that repairing the damaged facilities and restarting the supply could take longer than anticipated, potentially resulting in prolonged pressure on the sector. However, upstream companies and upstream service providers remain the biggest winner, while downstream players and energy‑consuming industries may face sustained margin pressure.
The brokerage also believes that the recent strike could results in long-term challenges for RLNG players like Petronet LNG, as a result the brokerage has removed it from its top-pick list.
The brokerage continues to prefer Reliance Industries Ltd., Deep Industries Ltd. and Gulf Oil Lubricants, which it believes are better positioned to navigate the evolving geopolitical and supply-demand dynamics.
Click on the attachment to read the full report:
ALSO READ: CLSA Sees Nifty Moving Towards 2025 Low Of 22,161 — Check Support Level
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
