Indian Oil Corporation was placed higher by 2.98% at Rs 416.50 on BSE today, after hitting a 52-week high of Rs 419 in morning trades.

Over 2.38 lakh IOC shares were recorded on BSE thus far. The scrip has now risen 77% from Rs 235 on 30 April 2003.

The rise in IOC is partly attributed to the accumulation going on in the energy and energy-related sector at the moment. FIIs, in particular, are bullish on this sector.

The stock has also taken in its stride reports that Sebi would be probing an issue of insider trading in a few stocks, including IOC. In fact, the market regulator has issued letters to some 15 mutual funds seeking details about investors who have an interest of more than Rs 10 lakh in any scheme of the respective MFs with IOC and some other stocks in their portfolio.

There's also high expectation that IOC will turn out spectacular results for the quarter ended 31 March 2003. Dealers say front running is taking place on the IOC counter ahead of its results . The results are slated for 23 June 2003. The market is also anticipating a huge dividend pay-out from the usually generous oil refiner, of around Rs 40 per share (400% on a face value of Rs 10) for FY 2002-03.

The market is upbeat about IOC after refining peer BPCL beat expectations and turned out an excellent performance. But oil and refinery analysts are not as upbeat as the market is, as indicated in their expectations for IOC - a 58-70%% fall in net profit to Rs 400-550 crore on a 11-20% rise in net sales to Rs 31,250-34,000 crore for the quarter ended 31 March 2003.

Earlier, the company recommended a 1:2 bonus issue of equity shares to shareholders - one new share for every two existing equity shares. When the bonus issue is concluded, the company's equity base will increase to Rs 1,168.02 crore from the current Rs 778.68 crore.

Fundamentally, IOC looks very strong. It has 10 refineries and 22,000 petrol pumps, representing 42% of the total refining capacity and 53% of petroleum product sales in India. IOC owns 6,523 km of crude and product pipelines in India.

IOC's huge investment of Rs 4,280 crore in shares of oil companies is also expected to earn it huge dividends. The company has invested in shares of ONGC, Gas Authority of India (GAIL), IBP, Chennai Petroleum and Bongaigaon Refinery at historically low prices. All these companies have posted record profits and announced fat dividends.

For the third quarter ended 31 December 2002, IOC recorded a 37% increase in net profit to Rs 776.56 crore (Rs 567.79 crore) on a 10% rise in net sales to Rs 31,212.23 crore (Rs 28,416.87 crore).

As on 31 March 2003, the Government of India held 82.03% equity stake in IOC, while the public and institutions held 3.70% and 4.94%, respectively.