State-owned oil marketing companies gain; BPCL hits new high

Shares of state-owned oil marketing companies such has Bharat Petroleum Corporation (BPCL), Hindustan Petroleum Corporation (BPCL) and Indian Oil Corporation (IOC) were trading higher between 2%-5% on the bourses as oil prices dropped on Monday, extending Friday’s sharp decline after Britain's vote to leave the European Union.

“Brent crude futures were down 15 cents at $48.26 a barrel by 0238 GMT on Monday, after settling down $2.50, or 4.9 percent, at $48.41 on Friday,” the Reuters report suggests. LINK

Lower crude oil prices could reduce under-recoveries of public sector oil marketing companies (PSU OMCs) on domestic sale of LPG and kerosene at government controlled prices. The government has already decontrolled pricing of petrol and diesel.

Among the individual stocks, BPCL has moved higher to its record high of Rs 1,044, up 3% on the BSE. The stock has outperformed the market by gaining 14% post bonus announcements on May 26, 2016, as compared to 2% rise in the S&P BSE Sensex.

BPCL has fixed July 14, as the record date for the purpose of determining members who would be entitled to the bonus shares in the ratio of 1:1 i.e. 1 (one) new bonus equity share of Rs 10 each for every existing 1 (one) fully paid up equity share of Rs 10 each. The stock will turn ex-bonus on July 13.

HPCL has surged 5% to Rs 984 on the BSE in intra-day trade, currently nears to its all-time high of Rs 991 touched on August last year. IOC was up 2% at Rs 428, as compared to 0.14% decline in the benchmark index at 10:19 AM.

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel