Oil shares move ahead in slippery market

Shares of oil marketing companies Indian Oil, HPCL and BPCL recorded smart gains in early morning trade today, despite an overall downward move on the bourses.

Analysts said that the stocks have added value amid reports that the government was moving in direction of de-control of diesel prices.

The gains in these stocks were in sharp contrast to huge losses suffered by the overall market in early morning trade. The benchmark Sensex was down 479.44 points at 17,213.34 points at 0940 hours, mostly because of negative global cues.

Shares of HPCL rose by 2.4% to Rs 401.85, while IOC was trading over 2% higher at Rs 336. BPCL was 1.04% up at Rs 693.10 in early morning trade.

Public sector energy giant ONGC was also trading 0.6% higher at Rs 274.80.

At the same time, shares of carmakers were trading with huge losses amid speculations that the diesel might get dearer for carowners.

Maruti was down 2.5% at Rs 1,170.45, Mahindra and Mahindra was down 3.03% at Rs 658.70 and Tata Motors was trading 3.4% lower at Rs 882.40.