PSU oil stock updates
Oil stocks continue to rally
Stocks of oil companies continued to rally on Monday as investors felt that revenues and profits of these companies, mainly the PSUs, will rise on the back of government's decision last week to free petrol prices and hike prices of diesel, kerosene and LPG. Analysts feel that the government decision could lead to re-rating for PSU oil companies as they now have greater leeway to fix petrol prices.
In Monday's relatively strong market, HPCL jumped 8% to Rs 433, while IndianOil gained 5.4% to Rs 398 and BPCL rallied 3.4% to Rs 642. Among other stocks from the sector, ONGC was up 3.2% to Rs 1,304 and Essar Oil ended 2.4% higher at Rs 141.
Oil & gas stocks also lifted market sentiment, and along with relatively stable global markets, gave BSE sensex a 200-point push which ended at 17,774.
Times of India, Mumbai, June 29, 2010
