OMCs under pressure; IOC hits 52-week low; HPCL, BPCL down 6%

Shares of oil marketing companies (OMCs) were under pressure with the Indian Oil Corporation (IOC) hitting its 52-week low, while Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL) falling 6% each on the BSE on reports that the government may ask these companies to freeze prices as a temporary arrangement.

IOC slipped 5% to Rs 154, its fresh 52-week low on the BSE, while HPCL plunged 6.4% to Rs 292 and BPCL shed 6% to Rs 373 on the BSE in intra-day trade. On comparison, the S&P BSE Sensex was trading 0.19% lower at 34,586 points at 10:48 am.

Oil and Natural Gas Corporation (down 2% at Rs 180) and Oil India (down 1.5% at Rs 235) were too trading lower by more than 1% on the BSE.

“Petroleum Minister Dharmendra Pradhan is expected to meet OMCs on Wednesday to take stock of the situation. It is likely that the government may ask IOC, HPCL and BPCL to freeze prices as a temporary arrangement,” the Business Standard reported.

“The Prime Minister’s Office (PMO) has been provided data and inputs from OMCs. For the last one week, discussions have been going on regarding an excise duty cut, and a decision is imminent,” added report with quoting a finance ministry official. CLICK HERE TO READ FULL REPORT