Oil stocks remain in red despite hike in fuel prices
National oil companies are swimming with the downward current in the stock market, which plummeted to psychological level of below 10,000.india Updated: Jun 06, 2006 13:51 IST
National oil companies are swimming with the downward current in the stock market, which plummeted to psychological level of below 10,000, overlooking a package including hike in fuel prices and the government's decision to issue oil bonds for reducing their under recoveries and improving profitability.
While some analysts feel that the trend is in line with global sentiments, others feel that the package is not enough for the national oil market PSUs, all of whom reflected extreme pressures of global surge in crude prices on their balance sheets.
The oil segment stocks, which could perform well after a steep rise in petrol and diesel prices, could not be spared from a volatile trading activity driving down almost all shares.
With the effect tracking the weak global stock markets last evening on surge in crude oil prices and fears of another hike in the US Fed interest rate.
State-run biggest refiner ONGC, having maximum weightage on the National Stock Exchange index Nifty plunged by Rs 71.30 at Rs 1029.90. Hindustan Petroleum dropped by Rs 8.15 at Rs 283, Bharat Petroleum by Rs 3.80 at Rs 370.20, Chennai Petroleum by Rs 17.25 at Rs 192, GAIL by Rs 12.35 at Rs 228 and Essar Oil by Rs 3.70 at Rs 43.50.
Reliance Industries, a Sensex heaviest and world's third largest oil major dropped by Rs 25.60 at Rs 900.
The leading international stock markets such as Dow Jones Industrial Average index posted its third-largest decline of the year as economic worries rattled investors. The Dow Jones Industrial Average fell by 199.15 points and the Nasdaq Composite Index by 49.79 points respectively.