Shares of three public sector oil marketing companies fell by 0.39% to 1.62% at 12:10 IST on BSE after global crude oil prices rose.
Meanwhile, the S&P BSE Sensex was down 99.08 points or -0.36% at 27,742.87.
Among PSU OMCs, BPCL (down 1.18%) and HPCL (down 1.62%) edged lower.
Indian Oil Corporation dropped 0.39%. With respect to media reports titled "Indian Oil Corp to own 45% stake in Ennore LNG's Tamil Nadu terminal", Indian Oil Corporation after market hours yesterday, 20 May 2015, clarified that as per the company's earlier clarification on 5 January 2015, the company's board at its meeting held in October 2014 had accorded approval for setting up a 5 million tonne LNG project at Ennore through a joint venture company. The cost of the project is estimated at Rs 5150 crore. The project would be implemented through a joint venture company and not directly by the company, Indian Oil Corporation said. Indian Oil Corporation will hold 45% equity stake, TIDCO (a Tamil Nadu state government enterprise) will own 5% stake and balance 50% will be held by financial institutions. Indian Oil Corporation clarified that no significant or material development has taken place with respect to this project after this clarification issued by the company on 5 January 2015.
Shares of BPCL had underperformed the market over the past one month till 20 May 2015, declining 2.18% compared with Sensex's 0.18% fall. The scrip had however outperformed the market in past one quarter, gaining 6.21% as against Sensex's 4.77% fall.
Shares of Indian Oil Corporation had underperformed the market over the past one month till 20 May 2015, declining 4.32% compared with Sensex's 0.18% fall. The scrip had however outperformed the market in past one quarter, gaining 3.26% as against Sensex's 4.77% fall.
Shares of HPCL had underperformed the market over the past one month till 20 May 2015, declining 0.64% compared with Sensex's 0.18% fall. The scrip had however outperformed the market in past one quarter, gaining 4.86% as against Sensex's 4.77% fall.
Brent crude oil futures extended previous session's gains today, 21 May 2015, supported by a drawdown in US crude inventories although weak China data and concerns about excess oil supply capped price gains. Brent for July settlement was up 32 cents at $65.35 a barrel. The contract had risen $1.01 a barrel or 1.57% to settle at $65.03 a barrel during the previous trading session.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 63.72, compared with close of 63.8275 during the previous trading session.
Higher crude oil prices could increase under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel. However, firmness in rupee reduces cost of oil imports for PSU OMCs.
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