Stocks of oil marketing companies fell as much as 4.6 per cent on Tuesday amid rising crude oil prices due to worsening of the unrest in Iraq.
Shares of HPCL plunged 4.54 per cent to Rs 402.70, while BPCL lost 3.34 per cent to Rs 591.30 on the BSE.
Similarly, the IOC scrip fell 2.05 per cent to Rs 342.35.
Jignesh Chaudhary, Head of Research, Veracity Broking Services said, “There were concerns over the impact of higher oil prices on inflation as India imports 80 per cent of its oil requirements and higher oil prices will automatically elevate inflation.”
Besides, the broader market sentiment was also hurt when the news of militant attack on Iraq’s main oil refinery came in.
Following this, the benchmark BSE Sensex plunged over 400 points during midsession trading. It later ended at 25,246.25, down 274.94 points.