PSU OMCs nudge higher on uptrend in rupee against the dollar

Shares of two public sector oil marketing companies rose 1.47% to 2.84% at 14:40 IST on BSE as recent gains in rupee against the dollar will help reduce cost of crude oil imports.

Meanwhile, the BSE Sensex was up 46.72 points, or 0.19%, to 24,653.71.

BPCL (up 2.84%) and HPCL (up 1.47%) gained. Indian Oil Corporation declined 1.19%.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 67.28, compared with its close of 67.335 during the previous trading session. India imports about 80% of its crude oil requirements and recent gains in rupee against the dollar will help reduce cost of imports.

Meanwhile, in the global commodities markets, Brent crude oil futures edged higher. Brent for May settlement was up 5 cents at $37.12 a barrel. The contract had risen 14 cents or 0.37% to settle at $37.07 a barrel during the previous trading session. Higher crude oil prices could increase under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.

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