OMCs bounce back to sweet spot as crude oil prices slip, GRMs improve

The share prices of public sector oil-marketing companies (OMCs) such as Hindustan Petroleum Corporation (HPCL), Bharat Petroleum Corporation (BPCL), and Indian Oil Corporation (IOC), which had declined more than 30 per cent since their early-June highs, are now seen bouncing back.   The declining crude oil prices, improving gross refining margins (GRMs), and a decent outlook for marketing margins (earned by retailing fuel such as petrol, diesel, etc) bode well for the OMCs and their earnings.   Weak GRMs had continued to impact the profitability of OMCs during the April-June qua.....

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