Oil E&P stocks drop on overnight slide in crude oil prices

Stocks of four companies involved in oil exploration & production activities fell 0.51% to 2.01% at 14:51 IST on BSE as global crude oil prices dropped sharply in the previous session.

Meanwhile, the S&P BSE Sensex was off 90.74 points or 0.33% at 27,110.75

ONGC (down 1.39%) and Oil India (down 2.01%) declined. Lower crude oil prices will result in lower realization from crude sales for oil exploration firms.

Brent for September settlement was currently up 20 cents at $46.60 a barrel. The contract had dropped $2.40 a barrel or 4.91% to settle at $46.40 a barrel during the previous trading session after data from Energy Information Administration (EIA) showed a smaller-than-expected weekly decline in US crude-oil inventories.

Shares of Cairn India dropped 1.36% to Rs 145.35 as the stock turned ex-dividend today, 8 July 2016, for final dividend of Rs 3 per share for the year ended 31 March 2016. Before turning ex-dividend, the stock offered a dividend yield of 2.03% based on its closing price of Rs 147.30 on the BSE yesterday, 7 July 2016.

Reliance Industries (RIL) declined 0.51%. Reliance Jio Infocomm (RJIL), a subsidiary of RIL, has raised Rs 2000 crore by issuing 5 year non-convertible debentures (NCDs) bearing a coupon of 8.32% per annum, payable annually. The issue has been assigned a rating of AAA by CRISIL and ICRA. The proceeds of the issuance shall be utilized by RJIL for rolling out a digital services business in India. The announcement was made after market hours yesterday, 7 July 2016.

Powered by Capital Market - Live News