As crude oil prices fall, shares of OMCs soar

Yes, you heard it right the shares of the leading oil marketing companies on July 19 closed 3 to 4 per cent higher on the bourses. The market largely remained flat for the day however the Indian, oil marketing companies have gained as the international oil plunged on an intraday basis. As at 3.30 pm IST, Crude Oil Brent was trading at 46.86 USD, down by 0.21 per cent. In the last 7 days, the oil prices have fallen by 4 per cent. However, in the last 6 months, crude oil prices have gained as much as 44 per cent.

On the other hand, the shares of Indian, oil marketing companies have closed stronger on the bourses.  The shares of Indian Oil Corporation of India closed at Rs 493.35, up by 4.40 per cent; Bharat Petroleum Corporation Limited, closed at Rs 572.05, up by 3.17 per cent; and Hindustan Petroleum Corporation of India closed at Rs 1115, up by 5.09 per cent.

The markets closed flat with Sensex closing at 27787.62, gaining 40 points, up by 0.15 per cent. Nifty closed at 8528, gaining 19.85 points, marginally up by 0.23 per cent. The shares of the major Indian, oil marketing companies will further surge if the oil price drops further.