Oil stocks come off on unwinding pressure

DALAL STREET SPIKES

Oil stocks came off from their highs on selling pressure in the second half of the trading session. Most refinery stocks opened positive on news of price hike and reduction in exercise duty from immediate effect.

BPCL plunged 4.46 per cent to Rs 333.85, HPCL ended 3.5 per cent lower at Rs 324, while IOC ended 2.27 per cent lower to close at Rs 386.75. All these stock came off from their day high which had gained more than 5 per cent.

The fall in these counter was on back of strong volumes. On Tuesday, the government approved the demand by oil marketing companies to hike prices of petrol, diesel and kerosene, following which, oil marketing companies announced that they had raised prices from Tuesday midnight.

The price of petrol rose by an average of Rs 2 per litre in the four metros. Diesel prices have been hiked by an average Re 1 per litre in the four metros.

Dealers said, operators who had build up position ahead of the price hike unwinded their position at higher levels in yesterday's trading.