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Thursday, May 28, 2020

Crude oil related stocks in focus: RIL slips 8%, ONGC market cap dips below Rs 1 lakh crore

The shares of oil marketing companies were trading on a positive note during the morning trade with Hindustan Petroleum (HPCL) surging as much as 12.82 per cent to Rs 226.60, while Bharat Petroleum (BPCL) climbed 12.72 per cent to Rs 454.10 and Indian Oil (IOC) rose 4.41 per cent to Rs 105.25.

By: Express Web Desk | New Delhi | Updated: March 9, 2020 11:38:01 am
Share Trading at a firm in Kolkata. (Express photo by Partha Paul)

Shares of oil-related companies were under focus during the morning trade on Monday following a rout in the global crude oil market as the commodity plunged more than 30 per cent after Saudi Arabia started a price war with Russia.

Shares of market heavyweight Reliance Industries (RIL) cracked 7.86 per cent to Rs 1,170.25 on the BSE during the morning deals on Monday, while those of state-owned Oil and Natural Gas Corporation (ONGC) tumbled 12.45 per cent to Rs 78.05.

The sharp decline in the share price of the state-owned company pushed its market capitalisation (market-cap) below Rs 1 lakh crore mark for the first time since August 2004. At 10:43 am, the market-cap stood at 99,195.50 crore.

Among others, the shares of oil marketing companies were trading on a positive note during the morning trade with Hindustan Petroleum (HPCL) surging as much as 12.82 per cent to Rs 226.60, while Bharat Petroleum (BPCL) climbed 12.72 per cent to Rs 454.10 and Indian Oil (IOC) rose 4.41 per cent to Rs 105.25.

This apart, the shares of airline companies too climbed following the slump in crude oil prices. InterGlobe Aviation which operates IndiGo rose as much as 3.33 per cent to Rs 1,217.20, while Spicejet surged 7.20 per cent to Rs 67.75.

Crude oil price

Saudi Arabia stunned markets with its plans to sharply raise the oil production after the collapse of OPEC’s supply cut agreement with Russia, a grab for market share reminiscent of a drive in 2014 that sent prices down by about two thirds.

The shock in oil was seismic as Brent crude futures slid $13.53 to $31.74 a barrel in chaotic trade, while US crude shed $13.45 to $27.83.

Other stocks

Yes Bank shares surge over 30 per cent

Among other stocks, the shares of private sector lender Yes Bank surged 32.71 per cent to Rs 21.50 on the BSE during the morning trade on Monday after State Bank of India (SBI) said that it will pick a 49 per cent stake in the troubled private lender as part of a revival scheme framed by the Reserve Bank of India (RBI) on Friday.

Following today’s morning gains, the stock has rallied a whopping 287.39 per cent from its 52-week low of Rs 5.55 on Friday’s intraday trade on the BSE.

In an exchange filing to the BSE, SBI announced that it will be issued 245 crore shares at a price of Rs 10 per share for Rs 2450 crores. This will be 49 per cent of the share capital of the reconstructed bank.

This apart, Moody’s Investors Service on Friday had said that RBI’s moratorium and withdrawal cap on Yes Bank is credit negative, and the lack of coordinated action highlights continued uncertainty around bank resolutions.

Separately, SBI shares slipped 5.88 per cent to Rs 254.55 in the morning trade.

(with crude oil price inputs from Reuters)

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