As the Government gears for 10 per cent divestment in Oil India Ltd (OIL) stock tomorrow, the entire PSU oil pack showed signs of firming up—both oil marketing companies and those in oil exploration.
But what is surprising is that many of these counters, which had hit 52-week highs barely a fortnight back after the OMCs were allowed to make a small correction in diesel prices, have lost considerable ground, even as the market was gaining and OIL issue was on the cards.
OIL stock gained Rs 14.65 to trade at Rs 541. But the stock has lost a little more than 10 per cent since touching the yearly high of Rs 618.10 on January 18. ONGC was trading at Rs 344.60, a gain of Rs 6.10. But its loss has been the least among the PSU oil pack after it touched a 52-week high of Rs 355 on January 18.
BPCL which touched a 52-week high of Rs 449 on January 21, is down to Rs 417.45 today, still a gain of Rs 8.10, but off its 52-week high less than 10 days back. HPCL was a major loser in percentage terms among the OMC shares down to Rs 336.25, a gain of Rs 3.60 but sharply down from its yearly high of Rs 381.65 it had touched on January 18.
The frenzy in the oil sector stocks was triggered by the January 17 announcement of the Government that OMCs were allowed to raise diesel prices in “small quantities over a period of time”. But since then these stocks, with the exception of ONGC, have lost much ground.