PSU OMCs gain as RBI eases foreign funding rules

BPCL (up 1.49%), HPCL (up 1.5%) and Indian Oil Corporation (up 2.18%), edged higher.

The S&P BSE Sensex was up 496.48 points, or 2.52% at 20,218.77.

BPCL had outperformed the market over the past one month till 14 May 2013, rising 9.42% compared with the Sensex's 8.11% gain. The scrip also outperformed the market in past one quarter, gaining 5.73% as against Sensex's 1.15% rise.

HPCL had underperformed the market over the past one month till 14 May 2013, rising 3.04% compared with the Sensex's 8.11% gain. The scrip also underperformed the market in past one quarter, falling 2.16% as against Sensex's 1.15% rise.

Indian Oil Corporation had underperformed the market over the past one month till 14 May 2013, rising 4.32% compared with the Sensex's 8.11% gain. The scrip also underperformed the market in past one quarter, falling 4.06% as against Sensex's 1.15% rise.

Public sector oil marketing companies (PSU OMCs) rose after the Reserve Bank of India (RBI) Deputy Governor H.R. Khan on Tuesday, 14 May 2013 said that that the central bank has allowed oil marketing companies to raise a part of their short-term capital requirements through overseas borrowings.

Oil marketing companies had hiked diesel prices by Rs 1.02 per litre effective Saturday, 11 May 2013. PSU OMCs suffer under recoveries on domestic sale of diesel, LPG and kerosene at 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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