MUMBAI (Commodity Online): After the crude oil prices extended gains on Wednesday on the reports showing steady improvement in demand from US market, oil explorers on the Indian bourses jumped with renewed buying interests.
India’s largest oil and gas exploration company, Oil India Ltd (BOM:533106) gained on the Bombay Stock Exchange (BSE) at Rs.1144.35 up by 0.39% in the morning trades today, while the public sector oil exploration major, Oil & Natural Gas Corporation (ONGC) (BOM:500312) gained by close to 0.5% to Rs.1077.35.
ONGC underperformed the market over the past one month till 16 March 2010, falling 2.72% as compared to the Sensex's 7.13% rise.
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Cairn India Ltd (BOM: 532792) was up over 1% to Rs.283.75, however the stock has underperformed the market over the past one month till 16 March 2010, gaining 6.14% as compared to the Sensex's 7.13% rise.
Rise in crude oil prices would result in higher realizations from crude sales for oil exploration firms. Light, sweet crude oil gained USD 1.90 or 2.3%, to USD 81.70 a barrel on the New York Mercantile Exchange on Tuesday, 16 March 2010 on weak dollar and expectations that producer group Organization of the Petroleum Exporting Countries (OPEC) will keep oil output cuts in place at a meeting to be held on Wednesday, 17 March 2010.
Oil extended gains by rising 36 cents or 0.44% to $82.06 a barrel in the Asian electronic trading on Wednesday.
