In trade on Monday, the shares of oil marketing companies (OMCs) namely HPCL, IOC and BPCL rallied after oil dropped as recession concerns in the US again loomed. At 10:20 am, the brent crude was priced at $66.33 per barrel down by 42 cents, from their last close while WTI crude was at $58.60 per barrel down by 44 cents, from its previous close.
The drop in crude has come as concerns around recession outweighed the issues relating to production cut by OPEC countries and US sanctions on Venezuela and Iran.
IOCL shares surged in trade by as much as 3.18%, HPCL shares 1.86% and BPCL's stock price increased 1.58 % intraday on the NSE.
Also, it is to be noted that sentiments around recession gripped in after the Fed's recent bearish move, which sent the US treasury yield to its lowest since early 2018.