MUMBAI: Shares of oil marketing companies (OMCs) today gained as much as over 5 per cent led by BPCLBSE 5.44 % amid lower crude oil prices in overseas market.
According to analysts, lower crude oil prices will help reduce oil marketing companies' under-recoveries.
The stock of Bharat Petroleum Corp Ltd (BPCL) jumped 5.44 per cent to close at Rs 394.70, while Hindustan PetroleumBSE 4.91 % Corp ( HPCLBSE 4.91 %) shares were up 4.91 per cent to Rs 311.95 on the BSE.
The scrip of Indian Oil Corp climbed 3.75 per cent to Rs 301.65 on the BSE.
Among others, Oil and Natural Gas CorporationBSE 3.45 % gained 3.45 per cent and Oil IndiaBSE 1.93 % rose by 1.93 per cent.
Following the gains in these stocks, the BSE oil and gas index closed 2.37 per cent higher at 8,561.17 and was the top gainer among the 13 sectoral indices.
"Crude oil prices saw a sharp fall and consequently the oil and gas pack showed buying interest. Lower crude oil prices will help reduce oil marketing companies' under-recoveries," said Nagji K Rita, Chairman & MD, Inventure Growth and SecuritiesBSE 4.88 %.
The US crude oil futures dropped below USD 90 a barrel. Meanwhile, in the broader market, the BSE 30-share barometer Sensex ended the day 115.24 points higher at 18,357.8.
