Falling crude prices helped shares of public sector oil companies outperform the broader markets on Friday, with smart gains amid an over 350-point plunge in the benchmark Sensex.
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Stocks like Indian Oil (IOC), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL) were trading higher, while exploration and production giant Oil and Natural Gas Corporation (ONGC) was among the best performers in the 30-share Sensex pack.
IOC was up 1.8 per cent at Rs 317.4, BPCL rose 1.4 per cent to Rs 688.35 and HPCL gained 1.6 per cent to Rs 385.
ONGC was also trading 0.5 per cent higher at Rs 277.10 after paring some of its early morning gains. In comparison, the Sensex was down nearly 2 per cent.
Among other oil and gas stocks, Gail, Oil India and Petronet LNG were also trading with gains.
Global stocks tank on recession fears
Brokers said that the oil marketing companies were up as falling crude prices could help reduce their under-recoveries from the sale of diesel and other fuel.
Crude oil prices extended their fall on Friday on concerns that energy demand could be hit hard if the global economy, especially the US, moves back into a recession.
Nymex crude prices fell below $80 per barrel in early Asian trade, while Brent North Sea crude prices were also down at near $106 per barrel.