Ioc and Hindustan Petroleum shares continue to gain, Bpcl slips after fuel prices rise for second day

Shares of public sector petroleum marketing companies (OMC) – Indian Oil Corporation (IOC), Hindustan Petroleum Corporation Limited and Bharat Petroleum Corporation Limited (BPCL) – traded mixed on Wednesday following rising fuel prices .

Petrol and diesel prices rose by 80 paise a liter each for the second consecutive day since the end of a hiatus of more than four and a half months in the revision of tariffs.

Petrol in Delhi will now cost Rs 97.01 per liter from Rs 96.21 previously while the diesel tariff has risen from Rs 87.47 per liter to Rs 88.27, according to a fuel retailer price notification from the state.

CIO shares were trading half a percent higher at Rs 121.30 on the National Stock Exchange (NSE) as of 11:30 a.m., after rising 2% in intraday trading. Over the past month, amid volatile oil prices due to geopolitical tensions between Russia and Ukraine, the stock has returned 3.37% to investors.

Hindustan Petroleum stock continued to rise for the second day to an intraday high of Rs 288.40. Shares in the state-owned company were trading up 1.7% at 285.10 rupees at the time of writing. Over the month-long period, stocks erased 1.5% of investors’ wealth compared to the benchmark Nifty index which gained 1.5% over the period.

BPCL shares were in red territory, halting the previous session’s gains. The stock, which slipped nearly one percent in intraday trade, was down 0.05 percent at Rs 368.20 at the time of writing. However, in the past month, it has increased investors’ wealth by more than 3%.

Brokerages see rising fuel prices as a positive for OMC stocks, with HPCL being their top pick.

Citi believes stocks should gradually reverse their recent underperformance. Companies finally raised retail gasoline and diesel prices, after a long pause of more than four months. HPCL remains OMC’s preferred choice, the brokerage firm said.

Meanwhile, global brokerage firm Morgan Stanley prefers HPCL and IOC and added that the rise in domestic LPG cylinder prices of Rs 50 is a welcome surprise.

Shares of all other oil and gas companies except Petronet LNG in the Nifty O&G pack were also in positive territory, gaining 0.2% to 3.7%.

On the global front, Brent crude futures climbed $1.77, or 1.53%, to $117.25 a barrel at 0443 GMT, after falling 14 cents in the previous session. U.S. West Texas Intermediate (WTI) crude futures rose $1.51, or 1.38%, to $110.78 a barrel.


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