The shares of India's leading oil marketing companies on Thursday (October 3) took a sharp hit. The shares of Bharat Petroleum Corporation Limited (BPCL), Hindustan Petroleum Corporation Limited (HPCL), and Indian Oil Corporation (IOC) in today's trading session experienced a significant decline with shares falling up to 6 per cent.
The sharp decline in the shares prices of the oil market companies is followed by a significant overnight rise in Brent crude oil prices, after the escalating geopolitical tensions in the Middle East. This rising geopolitical tensions in the Middle East, as Iran launched a ballistic missile strike on Israel, also raises fears of supply disruptions.
The Brent crude prices spiked over 4 per cent overnight, exacerbating concerns for oil marketing companies, which are particularly sensitive to crude oil fluctuations.
At 12:27 pm IST, BPCL was down 4.83 per cent to Rs 350.45 apiece. The shares of the company today opened at 353.75, and went to a low of Rs 350.25 apiece during the intraday trading session.
Share performance of BPCL |
Similarly, the shares of HPCL dropped 6.08 per cent to Rs 417.85. The shares of the company today opened at Rs 429.00 apiece.
Share performance of HPCL |
Furthermore, during the intraday trading session, at 12:27 pm IST, the shares of IOC fell 4.06 per cent to Rs 171.79.
Share performance of IOC |
The broader Nifty Energy index also dipped nearly 2 per cent as the market reacted to these developments.
Stock Market
The Indian headline indices, Sensex and Nifty, are trading in negative territory at 13:12 PM IST. The BSE Sensex is at 82,819.85, down by 1,435.83 points or 1.71 per cent. Similarly, the NSE Nifty is trading at 25,353.40, shedding 442.45 points or 1.72 per cent.
