OMCs stocks rise as crude oil price slumps
Mumbai: Shares of oil marketing companies (OMCs) Monday gained as much as over 5 percent led by BPCL amid lower crude oil prices in overseas market.
According to analysts, lower crude oil prices will help reduce oil marketing companies' under-recoveries.
The stock of Bharat Petroleum Corp Ltd (BPCL) jumped 5.44 percent to close at Rs 394.70, while Hindustan Petroleum Corp (HPCL) shares were up 4.91 percent to Rs 311.95 on the BSE.
The scrip of Indian Oil Corp climbed 3.75 percent to Rs 301.65 on the BSE.
Among others, Oil and Natural Gas Corporation gained 3.45 percent and Oil India rose by 1.93 percent.
Following the gains in these stocks, the BSE oil and gas index closed 2.37 percent higher at 8,561.17 and was the top gainer among the 13 sectoral indices.
"Crude oil prices saw a sharp fall and consequently the oil and gas pack showed buying interest. Lower crude oil prices will help reduce oil marketing companies' under-recoveries," said Nagji K Rita, Chairman & MD, Inventure Growth and Securities.
The US crude oil futures dropped below USD 90 a barrel.
Meanwhile, in the broader market, the BSE 30-share barometer Sensex ended the day 115.24 points higher at 18,357.8.