Shares of four oil exploration and production companies fell 0.49% to 1.79% at 12:25 IST on BSE after crude oil prices declined.
Meanwhile, the S&P BSE Sensex was down 132.02 points or 0.48% at 27,995.68.
Among oil exploration and production companies, Cairn India (down 1.44%), ONGC (down 1.31%) and Oil India (down 0.49%) declined. Lower crude oil prices would result in decrease in realizations from crude sales for oil exploration firms.
Reliance Industries fell 1.79% after consolidated net profit dropped 22.9% to Rs 7206 crore on 9.6% increase in turnover to Rs 81651 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 20 October 2016.
Among public sector oil marketing companies, BPCL (up 0.85%), Indian Oil Corporation (IOCL) (up 0.54%) and HPCL (up 1.02%) edged higher.
Lower crude oil prices could decrease 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. However, weakness is rupee raises cost of imports.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 66.8925, compared with closing of 66.81 during the previous trading session.
In global commodities markets, Brent crude oil futures extended losses as the dollar climbing to seven-month highs against a basket of currencies dragged down crude oil prices. Brent for December settlement was off 9 cents at $51.29 a barrel. The contract had dropped $1.29 a barrel or 2.44% to settle at $51.38 a barrel during previous trading session.
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