Shares of three public sector oil marketing companies (PSU OMCs) rose 2% to 3% after the government said that petroleum products demand is gradually getting towards near normal.
Bharat Petroleum Corporation rose 2.04% to Rs 387.60, Hindustan Petroleum Corporation gained 2.16% to Rs 217.25 and Indian Oil Corporation added 3.21% to Rs 88.40.
Meanwhile, the S&P BSE Sensex was up 509.36 points or 1.44% to 35,923.81.
India's overall petroleum products consumption, which had nosedived in last week of March and April this year, is now steadily getting to its pre-lockdown levels in June'20,as emanating from the PSUs' (IOC, BPC and HPC) sales figures.
The sales of petroleum products in India, the world's third biggest oil consuming nation, had fallen to the lowest since 2007, due to the nationwide lockdown, necessitated to prevent the spread of COVID-19 pandemic.
"With the gradual lifting of lockdowns and beginning of unlocking ofthe economy in a phased manner, allowing resumption of Industrial activity & movement of people, total petroleum products consumption has reached to 88% in June'20 (11.8 MMT) compared to June'19 (13.4 MMT), indicating the increase in production/industrial/transportation activities, across all segment of economic spectrum," the Ministry of Petroleum & Natural Gas said in a statement.
Overall the consumption of all petroleum products has significantly increased from April'20 level of 49% (6.6 MMT in Apr'20 vs 13.4 MMT in Apr'19) to 88% level in June'20 (11.8 MMT in June'20 Vs 13.4 MMT in June'19), it added.
This comes in the backdrop of Indian economy gradually getting momentum with the ease of lockdown restrictions and revival of economic activities that are slowly getting back on track, it added.
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