Shares of oil marketing companies (OMCs) such as Hindustan Petroleum Corp, Bharat Petroleum and Indian Oil rose today after brent crude oil price fell below $60 per barrel. While Hindustan Petroleum Corp share price rose 7% to Rs 322 intra day against previous close of Rs 301.10, Indian Oil Corp share price rose 5.83% to Rs 156 compared to previous close of Rs 147.40 on BSE.
Bharat Petroleum Corp (BPCL) share price gained 8.82% intra day to Rs 511.5 against the previous close of Rs 470.05 on BSE.
Apart from the positive sentiment arising out of fall in brent crude oil price, the gain in BPCL stock price can also be attributed to reports that a group of secretaries panel on disinvestment has approved the sale of government's entire shareholding in four public sector companies - Bharat Petroleum Corporation Ltd (BPCL), Shipping Corporation of India (SCI), THDC India and NEEPCO.
Investors expect oil marketing companies to benefit from a fall in price of brent crude which acts as an input in their manufacturing.