Shares of three oil exploration and production companies rose by 0.18% to 0.9% and shares of three public sector oil marketing companies dropped 1.33% to 2.01% at 10:35 IST on BSE as crude oil prices gained.
Meanwhile, the S&P BSE Sensex was up 163.16 points or 0.85% at 25,264.89.
Among shares of public sector oil marketing companies (PSU OMCs), BPCL (down 1.33%), HPCL (down 2.01%) and Indian Oil Corporation (IOCL) (down 1.66%) declined.
Rise in crude oil prices could increase under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at government controlled prices. The government has already decontrolled pricing of petrol and diesel.
Among shares of oil exploration and production (E&P), Cairn India (up 0.39%) and ONGC (up 0.9%) rose. Oil India declined 1.37%.
Index heavyweight Reliance Industries (RIL) was up 0.18% at Rs 979.25. The stock hit a high of Rs 983.50 and a low of Rs 978.45 so far during the day.
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Higher crude oil prices will result in higher realization from crude sales for oil exploration firms.
Crude prices edged higher in the global commodities markets as a huge wildfire in Canada disrupted its oil sands production and fighting between rival eastern and western political factions in Libya prevented a cargo belonging to trading giant Glencore from loading. Brent for July settlement was currently up 65 cents at $45.27 a barrel. The contract had declined 35 cents or 0.77% to settle at $44.62 a barrel during the previous trading session after a report from the US Department of Energy showed a larger-than-expected weekly build of crude stockpiles in the US.
The BSE Oil & Gas had outperformed the market over the past one month till 4 May 2016, gaining 1.46% compared with Sensex's 1.17% fall. The index had also outperformed the market in past one quarter, gaining 3.71% as against Sensex's 3.14% gains.
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