Shares of four oil exploration firms rose by 0.3% to 1.69% and shares of two PSU OMCs fell by 1.17% to 1.35% at 10:35 IST on BSE after global crude oil prices surged yesterday, 28 October 2015.
Meanwhile, the S&P BSE Sensex was down 80.70 points or 0.3% at 26,959.06.
Among oil exploration firms, ONGC (up 0.3%), Cairn India (up 1.69%), Oil India (up 1.6%) and Reliance Industries (RIL) (up 0.77%) gained. GAIL (India) declined 0.66%.
Higher crude oil prices would result in higher realizations from crude sales for oil exploration firms.
Among shares of public sector oil marketing, BPCL (down 1.35%) and HPCL (down 1.17%) declined. Indian Oil Corporation rose 0.38%.
Higher crude oil prices could increase under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. The weakness in rupee against the dollar will also raise the cost of crude oil imports. The government has already freed pricing of petrol and diesel.
In the global commodities markets, Brent for December settlement was currently down 20 cents at $48.85 a barrel. The contract had surged $2.24 a barrel or 4.78% to settle at $49.05 a barrel during the previous trading session.
In the foreign exchange market, the rupee weakened past 65 against the dollar. The partially convertible rupee was currently hovering at 65.155, compared with its close of 64.9275 during the previous trading session.
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