OMC stocks jump over 8% after crude oil plunges to two-month low. HPCL top gainer

Crude oil prices hitting a two-month low this week fuelled strong movement in stocks of domestic oil marketing companies (OMCs) which jumped over 8% on Thursday.

Crude oil prices hitting a two-month low this week fuelled strong movement in stocks of domestic oil marketing companies (OMCs) which jumped over 8% on Thursday. The top gainer was Hindustan Petroleum Corporation () followed by Bharat Petroleum Corporation () which shot up nearly 5% while Indian Oil Corporation () was up 4% in the intraday trade.

Oil prices fell about 3% on Wednesday on a surprise build in the US crude stocks and the prospect of a Middle East ceasefire agreement and as hopes faded for near-term U.S. interest rate cuts that could boost oil demand.

Brent futures for July delivery fell to settle at $83.44 a barrel on Wednesday.

HPCL hit the day's high of Rs 536.75 amid strong volumes with 1.78 crore shares changing hands on the NSE around 2:30 pm. The total traded value stood at Rs 935.88 crore. The multibagger stocks have been in top form over the last one year and have delivered 110% during this time. It is a significant outperformance over the broader Nifty which has delivered 25% returns. It has also outperformed the sectoral index Nifty Oil & Gas. The latter's returns over a 1-year period stand at 59%.

IOC also traded with strong volume as 5.28 crore shares changed hands around this time with total value traded at Rs 905.32 crore. This stock has also exhibited strong momentum in the last 12 months giving returns of 110%. In 2024 so far, its returns are at 33%.

Meanwhile, BPCL has outperformed the Nifty and sectoral index with returns of 75%. On the year-to-date basis, the returns stand at 40%.

The gains in this stock also helped the Nifty Oil & Gas index surge by 140 points or over 1% in the day's trade hitting the day's high of 11,966.50. Out of 15 stocks in the index, 8 were trading in the green. The top laggards were Aegis Logistics, Castrol India, and (India) which fell up to 7%.

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Source: Stocks-Markets-Economic Times