Shares of three upstream oil companies fell by 0.47% to 0.95% at 15:45 IST on BSE after fall in global crude oil prices.
Meanwhile, the BSE Sensex was up 158.36 points, or 0.61%, to 26,116.99.
Among upstream oil companies, Oil India (down 0.96%), Reliance Industries (RIL) (down 0.69%) and Cairn India (down 0.47%) declined. ONGC rose 0.21%.
Lower crude oil prices would result in lower realizations from crude sales for oil exploration firms.
In the global commodities markets, Brent for January settlement was currently down 38 cents at $45.08 a barrel. The contract had fallen 71 cents or 1.53% to settle at $45.46 a barrel during the previous trading session.
Meanwhile, among shares of public sector oil marketing companies (PSU OMCs), BPCL (down 1.25%), and Indian Oil Corporation (down 1.21%) edged lower. HPCL rose 0.7%.
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In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was currently hovering at 66.74, compared with its close of 66.57 during the previous trading session.
Lower crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent. A weak rupee raises the cost of imports. The government has already freed pricing of petrol and diesel.
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