Falling crude prices helped the shares of public sector oil companies outperform the broader markets this morning, with smart gains amid an over 350-point plunge in the benchmark Sensex.
Indian Oil, BPCL and HPCL were trading higher, while exploration and production giant ONGC was among the best performers in the 30-share Sensex pack.
IOC was up 1.8 per cent at Rs 317.40, BPCL 1.4 per cent at Rs 688.35 and HPCL gained 1.6 per cent to Rs 385.
ONGC was also trading 0.5 per cent higher at Rs 277.10 after paring some of its early morning gains. In comparison, the Sensex was down by nearly 2 per cent.
Among other oil and gas stocks, GAIL (India), Oil India and Petronet LNG were also trading with gains.
Brokers said that the oil marketing companies were up as falling crude prices could help reduce their under-recoveries from the sale of diesel and other fuel.
Crude oil prices extended their fall today on concerns that energy demand could be hit hard if the global economy, especially the US, moves back into a recession.
NYMEX crude prices fell below $80 per barrel in early Asian trade, while Brent North Sea crude was also down at near $106 per barrel.