PSU OMCs gain as RBI opens forex swap window

Shares of three public sector oil marketing companies rose by 0.74% to 2.11% at 09:41 IST on BSE as the RBI on Wednesday, 28 August 2013 said that it has decided to open a forex swap window to meet the entire daily dollar requirements of these firms.

BPCL (up 0.74%), HPCL (up 1.01%) and Indian Oil Corporation (up 2.11%), edged higher.

Meanwhile, the S&P BSE Sensex was up 139.46 points, or 0.77% at 18,135.61

The Reserve Bank of India (RBI) on Wednesday, 28 August 2013 said that on the basis of assessment of current market conditions, it has decided to open a forex swap window to meet the entire daily dollar requirements of three public sector oil marketing companies - Indian Oil Corporation, HPCL and BPCL. Under the swap facility, RBI will undertake sell/buy USD-INR forex swaps for fixed tenor with the oil marketing companies through a designated bank. The swap facility gets operationalized with immediate effect and will remain in place until further notice.

BPCL had underperformed the market over the past one month till 28 August 2013, sliding 23.4% compared with the Sensex's 8.87% fall. The scrip had also underperformed the market in past one quarter, declining 29.39% as against Sensex's 10.74% fall.

HPCL had underperformed the market over the past one month till 28 August 2013, sliding 29.5% compared with the Sensex's 8.87% fall. The scrip had also underperformed the market in past one quarter, declining 43.3% as against Sensex's 10.74% fall.

Indian Oil Corporation had outperformed the market over the past one month till 28 August 2013, sliding 7.54% compared with the Sensex's 8.87% fall. The scrip had also underperformed the market in past one quarter, declining 29.49% as against Sensex's 10.74% fall.

PSU OMCs had suffered steep losses recently as weakness in rupee raised concerns about increased costs of importing oil. PSU OMCs import about 70-75% of their crude oil needs and rely heavily on foreign currency borrowings, which largely remain unhedged. Rise in global crude oil prices also triggered the slide in PSU OMCs.

The rupee recovered against the dollar today, 29 August 2013. The partially convertible rupee was hovering at 67.35 against the dollar, sharply higher than its close of 68.80/81 on Wednesday, when it hit a record low of 68.85.

Meanwhile, US crude oil futures for October delivery fell 0.56%, to $109.48 a barrel in electronic trading today, 29 August 2013.

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