Shares of three state-run oil marketing companies (OMCs) including HPCL, BPCL and IOCL hit their 52-week low prices in intra-day trade on Wednesday.
All of these listed PSU OMCs have dropped in intra-trade by 3-4% on the BSE. HPCL recorded 52-day low price of Rs. 233.5 on the BSE while the other two BPCL and IOCL reached a 52-week low of Rs. 328.2 and Rs. 146.
In the early morning trade stock market was trading flat but after the stabilization of rupee, the markets have again gained momentum.
In the calendar year 2018, stock of IOCL has fallen by 24% while that of BPCL and HPCL is also down by 36% and 42%, respectively.
Oil prices on Tuesday surged more than 2% after reports of declining US crude inventories and as the US sanctions on Iran are expected to squeeze crude export by one of the leading oil producing country.
Rupee in trade on Wednesday further flipped by 0.13 paise and opened at 72.19 vs dollar in comparison to earlier closing of 72.69 per dollar.
As per HDFC securities reports, the sharp decline in OMC share prices is mainly triggered due to untimely auto fuel price hike as well as continuous crude oil price rally. And it is expected that these companies will be able to restore earlier margins.