OMC Stocks Surge as Crude Oil Falls Below $80 per Barrel

Mumbai: Shares of state-owned oil marketing companies (OMCs) rallied on Wednesday after global crude oil prices slipped below the $80-a-barrel mark, boosting investor sentiment on expectations of lower input costs and improved profitability.

Among the top gainers, **Hindustan Petroleum Corporation Ltd (HPCL)** rose as much as **2.26 per cent** to touch an intraday high of **Rs 410.45** on the BSE. **Bharat Petroleum Corporation Ltd (BPCL)** gained **2.46 per cent**, climbing to **Rs 319.50**, while **Indian Oil Corporation Ltd (IOCL)** advanced **1.61 per cent** to an intraday high of **Rs 147.45**.

The rally followed a sharp decline in global crude oil prices amid growing optimism that a proposed agreement between the United States and Iran could lead to increased Iranian crude exports, easing concerns over global oil supply.

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International benchmark **Brent crude** fell below **$80 per barrel**, hovering near a three-month low after witnessing a steep correction over the past few trading sessions. Meanwhile, **US West Texas Intermediate (WTI)** crude slipped around **1 per cent** to trade near **$75 per barrel**.

According to reports, the proposed interim agreement could allow Iran to resume crude oil exports while laying the groundwork for broader negotiations aimed at ending regional hostilities and addressing concerns surrounding Tehran's nuclear programme.

The proposed arrangement is also expected to facilitate the reopening of the **Strait of Hormuz**, one of the world's most critical energy shipping routes, improving the movement of oil tankers and merchant vessels through the region.

Market experts said the sharp fall in crude prices has eased one of India's key macroeconomic concerns.

"Brent crude has declined by around **16 per cent** over the past five days to nearly **$79 per barrel**, significantly reducing concerns over a widening balance of payments (BoP) deficit for India," analysts said.

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They also pointed to another positive trend for the markets — a slowdown in foreign institutional investor (FII) outflows. According to experts, continued strengthening of the Indian rupee could encourage further foreign investment into domestic equities.

The broader Indian equity market also traded in positive territory during the session, supported by improving global sentiment and easing concerns over elevated energy prices.
 

With inputs from IANS

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