HPCL, BPCL, IOCL gain up to 5%; Nifty Oil & Gas Index rises 1.5%
Hindustan Petroleum Corporation (HPCL), Bharat Petroleum Corporation (BPCL), Indian Oil Corporation Ltd (IOCL) saw their share prices rise up to 5% leading the gains for Nifty Oil & Gas index . Nifty Oil & Gas Index gained around 1.6%. Bharat Petroleum Corporation stood amongst largest gainers in Nifty -50 Stocks with gains of close to 3% .
Indian Oil Corporation was also not far behind with share price gaining 2-3%. Hindustan Petroleum Corporation share prices nevertheless rose close to 5% during intraday tards on Wednesday. The rally Bharat Petroleum , Hindustan Petroleum, Indian Oil share prices is likely to have been led by some softness in crude prices seen over past two sessions as Brent Crude dipped below $90 a barrel levels.
Also Read- FMEG Industry: Wire and cable stocks offer a huge opportunity; should you invest? The Oil Marketing Companies as Bharat Petroleum , Hindustan Petroleum, Indian Oil have seen pressure on their share prices in the recent past led by the rise in the Crude prices to beyond $90 a barrel on geopolitical worries. The rising Crude prices not only impact the margins the OMCs as Bharat Petroleum , Hindustan Petroleum, Indian Oil earn on selling fuel from retail outlets it also raises their working capital requirements. The analysts say that while volatility in crude prices still is not ruled out , nevertheless the impact also is likely to be temporary till election results are declared.
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