Stocks of three companies involved in oil exploration & production activities fell 1.5% to 3.9% at 13:45 IST as global crude oil prices dropped.
Oil India was off 1.5% at Rs 351.75. ONGC was off 1.6% at Rs 215.50. Cairn India was off 3.9% at Rs 140.25. Index heavyweight Reliance Industries bucked the weak trend in the sector. The stock was currently up 0.09% at Rs 976.55.
Meanwhile, the S&P BSE Sensex was off 191.52 points or 0.72% at 26,444.23.
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.
Global crude oil prices fell after a weekly report on Friday, 10 June 2016, showed increase in active oil rigs in the United States. Brent for August 2016 settle was currently off 49 cents or 0.97% at $50.05 a barrel. The contract had lost $1.14 a barrel or 2.71% to settle at $50.54 a barrel during the previous trading session on 10 June 2016. Oil market participants use the weekly report on active oil rigs in the US to gauge whether US producers are revving up oil-production activity. US energy firms added three oil rigs in the week to 10 June 2016, bringing the total rig count up to 328, compared with 635 a year ago, Baker Hughes said in its closely followed report.
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