Indian Oil Corporation (IOC) (up 0.64%), HPCL (up 0.48%) and BPCL (up 0.34%), edged higher.
The BSE Sensex was down 142.27 points or 0.79% to 17,967.62.
BPCL had outperformed the market over the past one month until 2 August 2011, gaining 1.68% compared with the Sensex's 3.48% fall. BPCL had also outperformed the market in past one quarter, rising 3.54% as against 4.67% decline in the Sensex.
HPCL had underperformed the market over the past one month until 2 August 2011, falling 4.55% compared with the Sensex's 3.48% fall. However, HPCL had outperformed the market in past one quarter, sliding 2.92% as against 4.67% decline in the Sensex.
IOC had underperformed the market over the past one month until 2 August 2011, falling 7.35% compared with the Sensex's 3.48% fall. IOC had also underperformed the market in past one quarter, sliding 9.08% as against 4.67% decline in the Sensex.
Lower crude oil prices could reduce under-recoveries of state-run oil marketing companies (PSU OMCs) on domestic sale of diesel, LPG and kerosene at controlled prices. The government has already freed pricing of petrol.
Light, sweet crude futures for delivery in September fell 21 cents or 0.22% at $93.58 a barrel after ratings agency Moody's assigned a negative outlook to the United States, stoking concern that demand may fall as the world's top oil user faces longer-term fiscal and economic challenges.
The Indian government on 24 June 2011 announced a hike in the price of diesel by Rs. 3 a litre, kerosene Rs. 2 a litre and cooking gas by a steep Rs. 50 a cylinder. The government also simultaneously slashed customs and excise duties on petroleum products, sacrificing Rs. 49000 crore a year in revenue. The government removed the 5% customs duty on crude oil, brought down the import duty on petrol and diesel from 7.5% to 2.5% and reduced the excise duty on diesel by Rs. 2.60 to Rs. 2 per litre.
