OMCs' stocks see mild recovery after petroleum minister's clarification

Surge in refining margins provides cushion for three state-run firms

The three government-owned oil marketing companies (OMCs) saw mild recovery in their stock prices on Thursday, after the petroleum minister assuring no interference in automobile fuels' pricing.

Earlier on Wednesday, the Street was concerned at news reports suggesting the three - Indian Oil Corporation (IOC), Bharat Petroleum (BPCL) and Hindustan Petroleum Corporation (HPCL) - would be asked to absorb higher global crude oil prices. As a result, their share prices fell by five to seven per cent, as the decade-old bogey of price controls appeared set to return.

The minister's clarification the same day (after trading hours) bodes well and provided relief.