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Our Bureau

Mumbai, Nov. 24 Oil marketing companies stocks have gained 19 to 28 per cent in the past month when the Sensex has moved up by just 2.32 per cent.

The shares of Indian Oil, Hindustan Petroleum and Bharat Petroleum have seen renewed buying interest as Government of India has been resisting the pressure to revise the petrol and diesel price.

Of late, the Indian crude basket price has fallen below $50 a barrel. The Government has been resisting price cut also on account of the strengthening of the US dollar against Indian rupee.

Government raised the petrol and diesel prices last time more than five months ago, towards the beginning of June, when Nymex crude futures price touched $140 a barrel.

The crude prices peaked at $147 a barrel in the first week of July before charting a downward path. Last week, Nymex and Brent crude futures traded below $50 a barrel after a gap of around two years.

Over the past two months (October-November) the international crude oil price have fallen much more sharply, from around $100 a barrel to less than $50 a barrel

But the oil marketing companies’ stocks started rising only after the late October stock market dip, when stocks touched their 52-week lows. Around this time, the prices of Indian crude basket also touched $60 a barrel mark.

Fall in oil prices is the main reason for the stocks of oil marketing companies to go up as there is less burden in terms of under recoveries. Also, at $50 to $60 price levels, the oil marketing companies have much better margins, said an analyst tracking the oil and gas sector at a Mumbai-based institutional broking firm.

The sharpest gain has been in the Hindustan Petroleum Corporation Limited (HPCL) shares, which surged by 28 per cent over the past month.

HPCL gained 6.57 per cent on Monday to close at Rs 243.45.

Bharat Petroleum Corporation Limited has gained 19.68 per cent over the same period. On Monday it closed at Rs 336.85 with a gain of 2.86 per cent.

Indian Oil Corporation has gained 18.94 per cent over the last one month.

Indian Oil stock gained 7.14 per cent on Monday alone to close at Rs 406.55.

More Stories on : Stocks | Petroleum | Hindustan Petroleum Corporation Ltd

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