Shares of oil marketing companies (OMCs) faced selling pressure on Monday, April 13, following a sharp surge in crude oil prices, which rose above $100 amid fresh developments in the war in the Middle East after the failure of US-Iran truce talks in Islamabad over the weekend.
Crude oil forms a major input cost for the oil PSU stocks like Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL). Any spike in crude prices weighs on these OMCs’ margins, making investor cautios.
More to come…