HPCL, IOC, BPCL shares jump amid sharp correction in global crude oil prices

New Delhi: Shares of oil refineries & marketing firms surged on Monday amid a sharp correction in global crude oil prices.

Global oil benchmark Brent crude declined 1.45 per cent to USD 60.40 a barrel. During morning trade, Brent crude dropped 3.65 per cent to USD 59.05 a barrel.

The stock of Hindustan Petroleum Corporation Ltd jumped 6.65 per cent, while Indian Oil Corporation rallied 3.66 per cent and Bharat Petroleum Corporation climbed 3.25 per cent on the BSE.

"Brent crude prices fell below USD 59 per barrel... This led to buying momentum in shares of oil marketing and other crude-derivative companies with Nifty oil and gas index gaining 1.7 per cent," Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd, said.

Lower crude prices tend to boost refining margins and improve profitability.

Falling crude oil prices also led to positive trend in aviation and paints stocks.

Among airline stocks, InterGlobe Aviation rallied 3.67 per cent and Spicejet went up by 1.09 per cent.

Shares of Berger Paints advanced 1.89 per cent, Asian Paints climbed 1.16 per cent, Akzo Nobel India advanced 1.01 per cent and Kansai Nerolac Paints went up by 0.47 per cent.

The 30-share BSE benchmark climbed 294.85 points or 0.37 per cent to settle at 80,796.84, extending its previous day's rally. The NSE Nifty rose 114.45 points or 0.47 per cent to 24,461.15.