Shares of three oil production and exploration firms rose 0.01% to 1.48% and shares of two state-run oil-marketing companies fell 0.32% to 0.48% at 11:15 IST on BSE after gains in global crude oil prices.
Meanwhile, the S&P BSE Sensex was down 25.02 points or 0.09% at 28,098.42.
Among shares of oil production and exploration firms, Cairn India (up 1.48% to Rs 205.30), Oil India (up 0.01% to Rs 374.55), and ONGC (up 0.21% to Rs 241.30) gained. Reliance Industries (RIL) declined 0.45% to Rs 1,012. Higher crude oil prices would result in increase in realizations from crude sales for oil exploration firms.
Among shares of state-run oil-marketing companies (PSU OMCs), BPCL (down 0.32% to Rs 585) and HPCL (down 0.48% to Rs 1,222.50) declined. Indian Oil Corporation (IOC) rose 0.04% to Rs 561.10. 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. Weakness in rupee raises cost of oil imports.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 66.925, compared with its close of 66.81 during the previous trading session.
In the global commodities markets, the crude oil prices extended gains on expectations of revived talks by key exporters to freeze output levels. Brent for October settlement was currently up 22 cents at $51.11 a barrel. The contract had risen $1.04 a barrel or 2.08% to settle at $50.89 a barrel during the previous trading session.
The BSE Oil & Gas had outperformed the market over the past one month till 18 August 2016, advancing 7.5% compared with 1.36% rise in the Sensex. The index had also outperformed the market in past one quarter, surging 16.79% as against Sensex's 9.41% rise.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
