PSU OMCs fall on weak rupee

Shares of three public sector oil marketing companies declined by 0.58% to 6% at 14:31 IST on BSE as the weakness of the rupee against the dollar could raise cost of crude oil imports.

HPCL (down 6% to Rs 195.80), BPCL (down 3.56% to Rs 322.15) and Indian Oil Corporation (down 0.58% to Rs 223.35), edged lower.

Meanwhile, the S&P BSE Sensex was down 380.46 points, or 1.88% at 19,883.25

Shares of public sector oil marketing companies (PSU OMCs) declined as the weakness of the rupee against the dollar could raise cost of crude oil imports. PSU OMCs meet most of their crude oil requirements through imports.

Meanwhile, as per media reports that the government has turned cautious about the proposal to increase diesel prices sharply and raise them every week as top Congress leaders and the party's allies are worried about the political fallout of such a move ahead of the festive season and elections in five states.

In the foreign exchange market, the rupee dropped against the dollar. The partially convertible rupee was hovering at 62.6200, weaker than its close of 62.23/24 on Friday, 20 September 2013.

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