Mumbai: Shares of Indian Oil and Bharat Petroleum gained Thursday after the Reserve Bank opened a special window to help meet the foreign-exchange requirements of state-owned oil refining companies.
Indian Oil shares gained 1.45 percent to Rs 209.55, while Bharat Petroleum was up 0.45 percent to Rs 270.05 on the BSE. Hindustan Petroleum fell 0.31 percent to Rs 163.35.
The three stocks had gained as much as 4 percent in early trade. The benchmark S&P BSE Sensex surged 404.89 points, or 2.25 percent, to close at 18,401.04.
The RBI said in a statement last night that the PSU oil companies could meet their entire daily dollar requirements through a special swap window effective immediately. The three companies are the biggest buyers of dollars in the currency markets, requiring about USD 8.5 billion every month to import an average 7.5 million tonnes of crude oil.
"RBI's latest move to open forex swap window for oil marketing companies to support their daily dollar requirement helped the rupee to strengthen considerably today, which reflected on the equity front as well," said Jayant Manglik, president of retail distribution at Religare Securities.
Under the facility, the RBI had said, it will "sell/buy USD-INR forex swaps for fixed tenor with the oil marketing companies through a designated bank." The swap facility will remain in place until further notice, it said.
First Published: Thursday, August 29, 2013, 14:05