Fall in oil prices help OMCs to keep up their stocks

Fall in oil prices help OMCs to keep up their stocks
Despite the state-run oil companies such as Indian oil, BPCL and HPCL posted losses in the quarter ended June, the stocks of these companies remained high.

These companies witnessed hefty losses following the under-recoveries, ad-hoc subsidies and surge in interest costs. However, the drop in the oil prices accompanied by the improved hopes on clarity in policy enabled these oil marketing companies (OMCs) to generate 1-4 per cent return since the last week of July.

The returns were achieved against the 13 per cent fall in BSE Sensex that followed the crash in the global stock market. These OMCs faced the losses despite the government and upstream PSUs sharing the burden of their losses.

Read more about: oil and gas, hpcl, ioc, stock market
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