Shares of three state-owned oil marketing companies declined amid firmness in crude oil prices.
Bharat Petroleum Corporation (down 1.28%), Hindustan Petroleum Corporation (down 0.92%) and Indian Oil Corporation (down 0.71%) declined.Higher crude oil prices could increase under-recoveries of public sector oil marketing companies (PSU OMCs) on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.
In the commodities market, Brent crude for February 2020 settlement was up 17 cents at $68.33 a barrel. The contract rose 0.35% to settle at $68.16 a barrel during the previous trading session.
Firmness in oil prices was underpinned by optimism over an expected U.S-China trade deal, while traders kept a close eye on the Middle East following a U.S. air strike.
Brent crude oil has rallied around 10.50% over last one year with prices managing to hold above $60 per barrel recently on positive US-China trade developments. Meanwhile, tensions escalated in Middle East after US carried out airstrikes against an Iranian-backed militia group in Iraq and Syria. This is keeping oil elevated amid a mixed outing in global equities today.
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