At 11.15 am, shares of Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd were trading 4.82 per cent, 5.09 per cent and 6.61 per cent lower at Rs 398.10, Rs 878.65 and Rs 890, respectively. The BSE Sensex was trading 116 points lower at 27,750.

According to Reuters, April-June results were influenced by inventory gains but a 23 per cent slump in benchmark Brent QTD means less likelihood of such gains in September quarter.

The Indian basket of crude oil price has plummeted to $54.41 per barrel, its lowest in four months, on the back of multiple factors, including a contraction in the manufacturing sector in China, the world’s second-largest consumer of crude after the US. A stronger US dollar has also made non-US investors to sell commodities, pressuring prices already impacted by the global oversupply concerns from the just-concluded Iranian nuclear deal.

The Indian basket represents the average price of Oman and Dubai sour grade crude and the sweet Brent crude oil processed in Indian refineries in the ratio of 72:28. It stood at $54.41 per barrel on the last trading day of July 24, falling from a peak of $66.54 per barrel on May 6, and the lowest since April 2 price of $54.77 per barrel.

HPCL has been the primary gainer of recent macro trends such as: a) low oil prices, b) successful implementation of direct benefit transfer (DBT) for LPG, c) higher than long-term average marketing margins in diesel and petrol after deregulation and d) robust GRMs. The company’s high leverage to marketing business makes it the primary gainer of these trends among all OMCs.

State-run refiner Hindustan Petroleum Corporation is planning to raise $200 million (Rs 1,260 crore) by this August, which would be used for its expansion, a company official and a banker confirmed.

“The funds would be used for our ongoing capital expenditure programme. We would also be using the funds to finance our ongoing four pipeline projects,” said the HPCL official.

Shares of state-owned oil marketing companies (OMCs) are on a roll with the three listed companies – Bharat Petroleum Corporation (BPCL), Hindustan Petroleum Corporation (HPCL) and Indian Oil Corporation (IOC) trading at their respective 52-week highs on expectations of higher earnings growth going ahead.

IOC has rallied nearly 6% to Rs 413, while HPCL has surged 4% to Rs 771 and BPCL has gained 2% at Rs 907 on the Bombay Stock Exchange (BSE). BPCL and HPCL are quoting at their record highs on the BSE.

Shares of oil marketing companies (OMCs) were trading higher on the bourses in an otherwise weak market as oil prices fell on fears of a Greek debt default.

Bharat Petroleum Corporation (BPCL), Hindustan Petroleum Corporation (HPCL) and Indian Oil Corporation (IOC) were up 1%-2% on the BSE compared to a 1.7% decline in the S&P BSE Sensex at 0939 hours.

Shares of oil marketing companies (OMCs) were in focus and trading higher on the bourses in otherwise subdued market after these companies announced Rs 0.64 a litre increase in petrol prices and a Rs 1.35 per litre cut in diesel prices to align the domestic rates with global price benchmarks.

At 0953 hours, Hindustan Petroleum Corporation (HPCL) was up 2.3% at Rs 710, also its 52-week high on the BSE. Indian Oil Corporation (IOC) up 2% at Rs 361 and Bharat Petroleum Corporation (BPCL) up 1.6% at Rs 847.

Shares of oil marketing companies mainly Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) have rallied by up to 6% each on the bourses after the companies reported better-than-expected results for the March 2015 quarter.

HPCL has surged 6% to Rs 674, less than 2% away from its record high of Rs 686 on the NSE, after posting a net profit at Rs 2,162 crore against average analyst estimates of Rs 1,341 crore. The board has recommended a final dividend of Rs 24.50 per share.

JAIPUR: The refinery project would generate cash surplus for Hindustan Petroleum Corporation (HPCL) even without the Rajasthan government financial assistance of Rs 3,736 crore annually to the company for 15 years. The findings that have come out in the preliminary report of PwC has firmed up the state government stand for refusing to extend interest-free loan to HPCL.

From starting of operations, the profit earned by the main promoter HPCL would be above Rs 2,000 crore annually. Except in the second year, where cash surplus is estimated to be Rs 1500 crore, the company is expected to register increase in net profits every year.

State-run oil marketing companies surged over 4 per cent in intraday trade on Tuesday.

Indian Oil Corp gained as much as 2.48 per cent, Bharat Petroleum Corp was up 4.44 per cent and Hindustan Petroleum Corp surged 4.5 per cent in intraday trade.

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