Oil exploration firms drop & PSU OMCs gain after slide in crude oil prices

Shares of four oil exploration firms dropped by 0.56% to 1.28% and shares of three PSU OMCs rose by 0.21% to 1.11% at 10:40 IST on BSE after global crude oil prices skidded yesterday, 19 October 2015.

Meanwhile, the BSE Sensex was up 30.12 points, or 0.11%, to 27,395.04.

Among shares of oil exploration firms, Reliance Industries (RIL) (down 0.59%), Cairn India (down 1.28%), ONGC (down 1.01%) and Oil India (down 0.56%) dropped. Lower crude oil prices would result in lower realizations from crude sales for oil exploration firms.

Among shares of public sector oil marketing companies, BPCL (up 0.21%), Indian Oil Corporation (up 0.26%) and HPCL (up 1.11%) edged higher. Lower crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent. A weak rupee raises the cost of imports. The government has already freed pricing of petrol and diesel.

In global commodities markets, Brent crude oil futures for December settlement was currently up 21 cents at $48.82 a barrel. The contract had skidded $1.85 a barrel or 3.66% to settle at $48.61 a barrel during the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was currently hovering at 64.92, compared with its close of 64.80 during the previous trading session.

Powered by Capital Market - Live News