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Shares of oil and gas, including oil marketing companies are trading higher by up to 4% on the bourses due to decline in Brent crude oil price.
Brent crude oil futures for October delivery were down 65 cents or 0.63% to $102.88 a barrel in electronic trading today. US crude oil futures for September delivery was down 45 cents, or 0.46% at $96.90 a barrel in electronic trade.
Lower crude oil prices will reduce under recovery of public sector oil marketing companies on domestic sales of diesel, kerosene and LPG at government controlled prices.
Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL) rallied 4% each at Rs 431 and Rs 636 respectively, while and Indian Oil Corporation (IOC) up 3% at Rs 349.
Oil India (Rs 590) and Oil and Natural Gas Corporation (Rs 416) up 2% each on the Bombay Stock Exchange (BSE).
At 1050 hours, S&P BSE Oil and Gas index was up 140 points or 1.3% as against 98 points or 0.4% rise in the benchmark index S&P BSE Sensex.
Meanwhile, analyst at Motilal Oswal Securities remain positive on ONGC and Oil India, recommended ‘buy’ rating with a target price of Rs 485 and Rs 700 respectively given the earnings growth from higher gas price, and higher net realization, led by likely lower subsidy.
Brent crude oil futures for October delivery were down 65 cents or 0.63% to $102.88 a barrel in electronic trading today. US crude oil futures for September delivery was down 45 cents, or 0.46% at $96.90 a barrel in electronic trade.
Lower crude oil prices will reduce under recovery of public sector oil marketing companies on domestic sales of diesel, kerosene and LPG at government controlled prices.
Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL) rallied 4% each at Rs 431 and Rs 636 respectively, while and Indian Oil Corporation (IOC) up 3% at Rs 349.
Oil India (Rs 590) and Oil and Natural Gas Corporation (Rs 416) up 2% each on the Bombay Stock Exchange (BSE).
At 1050 hours, S&P BSE Oil and Gas index was up 140 points or 1.3% as against 98 points or 0.4% rise in the benchmark index S&P BSE Sensex.
Meanwhile, analyst at Motilal Oswal Securities remain positive on ONGC and Oil India, recommended ‘buy’ rating with a target price of Rs 485 and Rs 700 respectively given the earnings growth from higher gas price, and higher net realization, led by likely lower subsidy.
