Shares of state-owned oil marketing companies are under hammer with all three listed companies are trading at their 52-week lows after the rupee again breached the Rs 60 per dollar mark in afternoon trades.
This is the first time the rupee breached the Rs 60 per dollar mark after the Reserve Bank of India (RBI) announced liquidity tightening measures on July 15.
Indian Oil Corporation, Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL) were down in the range of 7-10% in late noon deals on BSE.
A constantly falling rupee against the dollar has become a cause of concern for oil marketers who import nearly 70% of the crude oil requirements.
According to market experts, the rupee depreciation is negative for the state-owned oil marketing companies, which continue to import about 70-75% of their crude oil needs and rely heavily n foreign currency borrowings, which largely remain unhedged.
Among the individual stocks, HPCL, the largest loser among the oil and gas pack, slipped 10% at Rs 201, followed by BPCL (down 8% at Rs 314) and IOC (down 7% at Rs 199).
Oil and Natural Gas Corporation and Oil India are also down by 5% and 3.5% respectively on BSE.
This is the first time the rupee breached the Rs 60 per dollar mark after the Reserve Bank of India (RBI) announced liquidity tightening measures on July 15.
Indian Oil Corporation, Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL) were down in the range of 7-10% in late noon deals on BSE.
A constantly falling rupee against the dollar has become a cause of concern for oil marketers who import nearly 70% of the crude oil requirements.
According to market experts, the rupee depreciation is negative for the state-owned oil marketing companies, which continue to import about 70-75% of their crude oil needs and rely heavily n foreign currency borrowings, which largely remain unhedged.
Among the individual stocks, HPCL, the largest loser among the oil and gas pack, slipped 10% at Rs 201, followed by BPCL (down 8% at Rs 314) and IOC (down 7% at Rs 199).
Oil and Natural Gas Corporation and Oil India are also down by 5% and 3.5% respectively on BSE.
