Oil ended the first week of 2021 with a gain of nearly 8 percent as OPEC leader Saudi Arabia continued with its lower-for-longer supply strategy. Saudi Arabia announced an additional 1 million barrels per day (Mbpd) output cut over February and March. OPEC+ agreed most producers would hold output steady in February and March while allowing Russia and Kazakhstan to raise output by a modest 75,000 bpd in February.
The oil market's attention has been almost entirely on the potential for reduced global supplies. The decision by the Saudis was a big deal and it's an underpinning for oil prices. Clearly, maintaining the oil price was paramount and they were willing to let others take advantage in order to accomplish that. This was followed by a large US crude oil inventory drawdown reported by the EIA earlier in the week, which only provided further support.
Further boost to crude prices came from the annual rebalancing by commodity funds to match the requirement of indexes they are benchmarked against — an exercise that began Friday and could result in the purchase of some $9 billion of oil contracts over the next week. WTI's nearest contract traded at a premium to the following month for the first time since May, while the closely-watched spread between the nearest two December contracts is at its strongest intraday level since last January.
Steel Strips Wheels share price was up 4 percent intraday on January 12 after the company declared its Q3 numbers.
The company reported a net profit of Rs 28.7 crore in the quarter ended December 2020 against Rs 6.3 crore in the year-ago. Revenue jumped 52.7 percent at Rs 524.5 crore against Rs 343.6 crore.
Steel Strips reported EBITDA which was up 53.5 percent YoY at Rs 65.5 crore against Rs 42.7 crore, while EBITDA margin stood at 12.5 percent against 12.4 percent.
The stock was trading at Rs 671.00, up Rs 22.95, or 3.54 percent at 13:12 hours. It has touched an intraday high of Rs 687.80 and an intraday low of Rs 651.60.
The scrip also witnessed a spurt in volume by more than 4.92 times and was trading with volumes of 35,556 shares, compared to its five day average of 7,076 shares, an increase of 402.47 percent.
The company has been a leading supplier of steel wheel rims to major auto names including Tata Motors, Maruti Suzuki, Ashok Leyland and Mahindra & Mahindra among others.
It has been targeting export market aggressively and has been receiving orders from Europe, the UK and the US. It has a strong order book from the export market.
According to Moneycontrol SWOT Analysis powered by Trendlyne, the stock is showing strong momentum: price above short, medium and long term moving averages. The Company has decreasing promoter pledge with FII / FPI or institutions increasing their shareholding.
Source:-moneycontrol.com