OMCs rally, HPCL surges 7%

The stock prices rises on expectation of partial decontrol in diese pricel and increase of regulated products price

Shares of oil marketing companies (OMCs) are in limelight on the bourses in late noon trades on expectation of partial decontrol in diesel price and increase of regulated products price.

All three OMCs - Hindustan Petroleum Corporation (HPCL), Indian Oil Corporation (IOC) and Bharat Petroleum Corporation (BPCL) are trading higher by 3-7% on the Bombay Stock Exchange at 1322 hours.

“The Reserve Bank of India in its latest monetary policy noted that decision to cut 50bps in April was based on the premise that the process of fiscal consolidation critical for inflation management would get under way, along with other supply-side initiatives,” Antique Stock Broking said in latest report.

 

“The broking firm recommends BUY on OMCs as stocks trade at significant discount to book values,” added report.

Among the individual stocks, HPCL has rallied almost 7% to Rs 322 followed by IOC (up 4%) and BPCL (up 3%) on the National Stock Exchange.