Shares of oil marketing companies IOC, HPCL and BPCL recorded smart gains in morning trade today despite the overall weak trend in the broader market.
The rise of these stocks was in sharp contrast to the massive losses suffered by the overall market in early trade. The benchmark Sensex was down by 248.20 points at 16,741.98 at 1100 hours due to the US downgrade crisis.
Analysts said the oil marketing company stocks were moving up amid optimism that sharply lower crude oil prices will help these state-run firms cut their losses on the sale of fuel.
Shares of Indian Oil went up by 1.57% to touch an early high of Rs 344.50, while HPCL gained 2.62% to trade at Rs 407.45. BPCL was trading at Rs 704, up 0.38% from its previous close.
Public sector energy major ONGC, too, was trading higher by 0.76% at Rs 284.75.
Airline stocks also gained after a steep fall in crude oil prices, as jet fuel prices may fall. Jet Airways was trading up 0.48% at Rs 432.95, Kingfisher Airlines went up by 1.11% to Rs 31.85, while Spicejet dropped by 1.24% to Rs 27.85.
Brent crude oil, the major oil-price benchmark, slumped by 4.5% to USD 99.06 a barrel today.
