NEW DELHI, Apr 8: Shares of oil marketing companies soared on Wednesday, with HPCL climbing 9 per cent, as crude oil prices retreated sharply to fall below the USD 100 mark after the US and Iran announced a two-week ceasefire.
Brent crude, the global oil benchmark, dropped 14.03 per cent to USD 93.87 per barrel.
The stock of Hindustan Petroleum Corporation Ltd (HPCL) zoomed 9 per cent to Rs 361.35 on the BSE.
Shares of Bharat Petroleum Corporation Ltd (BPCL) jumped 8.83 per cent to Rs 301.90 and Indian Oil Corporation climbed 8.21 per cent to Rs 145.55.
Stock markets also cheered the ceasefire announcement. The 30-share BSE Sensex jumped 2,988.82 points or 4 per cent to 77,605.40 in late morning trade. The 50-share NSE Nifty surged 890.35 points or 3.85 per cent to 24,014.
“The key trigger is the announcement of a two-week pause in US military action, alongside Iran’s agreement to facilitate safe passage through the Strait of Hormuz. This has significantly reduced immediate concerns around energy supply disruptions, which had been a major overhang for global markets,” Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.
Oil marketing companies had come under pressure recently due to higher crude oil prices which threatened to squeeze their refining and marketing margins. (PTI)
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