Shares of three public sector oil marketing companies gained by 3.92% to 8.8% at 11:14 IST on BSE as a strong rebound in rupee against the dollar this week has eased concerns of higher cost of crude oil imports.
BPCL (up 8.8% to Rs 337), HPCL (up 4.88% to Rs 195.70) and Indian Oil Corporation (up 3.92% to Rs 215.90) edged higher.
Meanwhile, the S&P BSE Sensex was down 72.91 points, or 0.37% at 19,820.94
Shares of three public sector oil marketing companies (PSU OMCs) gained as a strong rebound in rupee against the dollar this week has eased concerns of higher cost of crude oil imports.
PSU OMCs import about 70-75% of their crude oil needs and rely heavily on foreign currency borrowings, which largely remain unhedged.
In the foreign exchange market, the rupee strengthened past 62 against the dollar on general risk-on sentiment in global markets. The partially convertible rupee was hovering at 61.8350, compared with its close of 62.07 on Thursday, 26 September 2013.
Meanwhile, fall in crude oil prices also boosted PSU OMC shares. US crude oil futures for November 2013 delivery were down 0.41%, or 42 cents at $102.61 a barrel in the electronic trading today, 27 September 2013.
Lower crude oil prices will reduce under-recovery of public sector oil marketing companies (PSU OMCs) on domestic sale of diesel, LPG and kerosene at government controlled prices.
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