Shares of oil marketing companies such as HPCL, BPCL and Indian Oil have rallied more than 2% each on reports that since April, the revenue loss on diesel and cooking gas has come down by 36% and 44%, respectively.
“In April, the three oil marketing companies — Indian Oil, BPCL and HPCL — were losing Rs 563 crore a day on these products. The losses as on July 3, 2012 are down to Rs 355 crore, providing major relief to these companies which depend on borrowings to fund the under-recovery, as compensation from the government comes with a lag,” the report suggests.
Among the individual stocks,HPCL has soared 5% to Rs 350, followed by Indian Oil (up 4%) and BPCL (up 2%) on the Bombay Stock Exchange