Stocks of three companies involved in oil exploration & production activities fell 1.10% to 1.39% at 12:02 IST on BSE as global crude oil prices dropped.
Cairn India was off 1.39% at Rs 138.35. ONGC was off 1.26% at Rs 211. Oil India, however, was up 0.16% at Rs 350.45.
Index heavyweight Reliance Industries was off 1.10% at Rs 971.65.
Meanwhile, the S&P BSE Sensex was off 367.41 points or 1.38% at 26,357.88.
Lower crude oil prices will result in lower realization from crude oil sales for oil exploration & production (E&P) firms if the prices are sustained at lower level.
Crude oil prices edged lower on risk aversion in global markets ahead of a referendum in UK on 23 June 2016 that could end Britain's membership in the European Union. Brent for August 2016 settlement was currently off 40 cents at $48.57 a barrel. Brexit refers to the referendum on 23 June 2016 by British voters to decide whether the country should remain a member of the European Union or leave it.
Also Read
The Brent August contract lost 86 cents or 1.73% to settle at $48.97 a barrel yesterday, 15 June 2016.
Powered by Capital Market - Live News