HPCL, BPCL, IOCL: OMCs rally up to 23% in Nov; will they sustain the gains?

Drop in crude oil prices and a bumper profit in Q2 has fuelled the rally so far in oil marketing companies.

Shares of oil marketing companies (OMCs) such as Hindustan Petroleum Corporation Limited (HPCL), Bharat Petroleum Corporation Limited (BPCL) and Indian Oil Corporation Limited (IOCL) have rallied 23 per cent, 11.5 per cent and 19 per cent so far in November on the back of a sharp fall in Crude Oil prices, and a bumper net profit in the September quarter.

Brent Crude Oil prices drifted from highs of around $97 per barrel to $80 per barrel as fears of Middle East crisis - the Israel-Hamas war - escalating to neighbouring countries abated. 

Meanwhile on the corporate earnings front, HPCL recorded a consolidated