PSU OMCs drop as crude oil gains

HPCL (down 2.53% at Rs 273), BPCL (down 2.46% at Rs 366.85) and Indian Oil Corporation (down 1.5% at Rs 266) edged lower.

The S&P BSE Sensex was up 1.18 points or 0.01% at 19,430.41.

BPCL had underperformed the market over the past one month till 7 June 2013, sliding 7.57% compared with the Sensex's 2.3% fall. The scrip had also underperformed the market in past one quarter, declining 3.65% as against Sensex's 0.08% gain.

HPCL had underperformed the market over the past one month till 7 June 2013, sliding 7.82% compared with the Sensex's 2.3% fall. The scrip had also underperformed the market in past one quarter, declining 7.53% as against Sensex's 0.08% gain.

Indian Oil Corporation (IOC) had underperformed the market till 7 June 2013, sliding 8.1% compared with the Sensex's 2.3% fall. The scrip had also underperformed the market in past one quarter, declining 12.24% as against Sensex's 0.08% gain.

US crude oil futures for July 2013 delivery were down 40 cents a barrel at $95.63 a barrel in the electronic trading today, 10 June 2013. The contract had surged $1.27 a barrel or 1.34% to settle at $96.03 a barrel on the New York Mercantile Exchange on Friday, 7 June 2013, its highest closing level since 21 May 2013.

Higher crude oil price will increase under-recovery of PSU OMCs on domestic sales of diesel, LPG and kerosene at government controlled prices. In January 2013, the government allowed PSU OMCs to raise diesel prices in small measures at regular intervals while completely deregulating diesel prices sold to institutional or bulk buyers. The government has already freed pricing of petrol.

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