OMC's surge as crude falls

OMC companies like HPCL, BPCL and IOC are doing very today in an otherwise lackluster market. HPCL leads the pack, up almost 4.5% at Rs.508.10, a new 52-week high. BPCL is up 3% at Rs.669.75. IOC is up over 4% at Rs.372.

These stocks are cheering as brent crude has now slipped to $90.85/barrel, down over $1.2/barrel. This in turn means that subsidy burden of these companies will come down substantially. In fact they are today making a profit of Rs.1.90 per litre on diesel for the period of Oct 1-15. Under-recovery on kerosene and LPG stood at Rs.156 crore.