HPCL, BPCL, IOC: Will petrol, diesel price cut derail rally in OMCs?

Shares of OMCs have rallied around 50 per cent in the last two months on the back of strong Q2 earnings. Can a fuel price hike derail the rally? Here's what the chart suggests.

Shares of Oil Marketing Companies (OMCs) - Hindustan Petroleum  (HPCL), Bharat Petroleum Corporation (BPCL) and Indian Oil Corporation (IOC) were under pressure in intra-day deals on Friday following reports of a likely cut in petrol and diesel prices.

According to reports, with general elections expected to be scheduled in the first half of 2024, the government is considering reducing prices of petrol and diesel in the near future. The said move could cheer the common man, and also aid in easing the inflation. 

Shares of OMCs have outperformed the benchmark indices in the last two months with a rally of around 50