Shares of three PSU OMCs rose by 0.26% to 1.27% and shares of three upstream oil companies fell by 0.88% to 2.15% at 11:20 IST on BSE after crude oil prices declined.
Meanwhile, the S&P BSE Sensex was up 18.59 points or 0.07% at 27,579.97.
Shares of public sector oil companies (PSU OMCs) rose as crude oil prices edged lower. Among PSU OMCs, Indian Oil Corporation (up 0.47%), BPCL (up 0.26%) and HPCL (up 1.27%) edged higher.
Lower crude oil prices could reduce 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.
While, shares of upstream oil companies declined after crude oil prices declined. Among upstream oil companies, ONGC (down 0.88%), Oil India (down 2.15%), and Cairn India (down 1.01%) declined.
Reliance Industries (RIL) rose 0.46%.
Lower crude oil prices would result in lower realizations from crude sales for oil exploration firms.
Meanwhile, in the global commodities markets, Brent crude oil futures fell close to four month lows today, 28 July 2015, after stock market sell-offs on both sides of the Pacific rattled investor sentiment about the Chinese economy, adding to concerns about a global oil glut. Brent for September settlement was currently off 28 cents at $53.19 a barrel. The contract had fallen $1.15 a barrel or 2.1% to settle at $53.47 a barrel during the previous trading session.
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