The government’s decision to partially deregulate the fuel prices lifted the stock prices of the oil marketing companies, even as the Bombay Stock Exchange benchmark Sensex fell 155 points or 0.9 per cent.
HPCL was the biggest gainer with a 13.7 per cent rise in its stock price on Friday. BPCL and IOCL were up by 12.8 and 10.4 per cent respectively.
“Downstream oil companies may not have to face subsidy burden and that will increase their profitability,” said Aseem Dhru, CEO, HDFC Securities.
Even ONGC saw a 6.4 per cent jump in its share price.
The move is also expected to benefit private players, and Reliance Industries saw a 1.1 per cent rise in its share price. The Essar Oil share saw an impressive 6.5 per cent rise.