Shares of state-run oil marketing companies rose 0.75% to 1.70% after media reports suggested that the national carrier Air India would settle its dues with the PSU OMCs via easy monthly installments.
Meanwhile, the S&P BSE Sensex was up by 148.52 points, or 0.40% to 37,293.97.
HPCL (up 1.70%), BPCL (up 1.28%) and Indian Oil Corporation (up 0.75%), advanced.
Media reports suggested that Air India will pay Rs 100 crore to the public sector oil marketing companies (PSU OMCs) from September 2019 onwards as the national carrier looks to clear oil firms' dues in monthly installments.
The reports added that this payment is one of the arrangements chalked out by the government to ensure uninterrupted fuel supply to the debt-ridden airline.
Public sector OMCs had earlier on 22 August stopped fuel supplies to Air India at six airports of Kochi, Mohali, Pune, Patna, Ranchi and Vizag over payment defaults. PSU OMCs together have unpaid liabilities of close to Rs 5,000 crore from state-run air carrier, reports stated.
In the commodities market, Brent crude for November 2019 settlement was up 31 cents at $62.69 a barrel.
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