Shares of oil marketing companies fell as crude prices hit 2-year high . OMCs were among the top percentage losers on the NSE index.
Hindustan Petroleum Corp Ltd shares fell as much as 2.3 per cent to Rs 420, lowest since November 23, while Bharat Petroleum Corp Ltd and Indian Oil Corp Ltd slipped as much as 1.8 per cent and 1.7 per cent, respectively.
US oil prices hit their highest levels in more than two years on Friday following the continued shutdown of the Keystone pipeline; the prices eased on Monday on the prospect of increased US output.
“Crude oil prices are moving up, which is negative for the oil marketing companies and that's pushing the stocks of OMCs down,” says Sudeep Anand, IDBI Capital.
Meanwhile, oil explorers such as Oil and Natural Gas Corp Ltd rose as much as 1.66 per cent to Rs 184, highest since November 14.