OMCs defy market weakness, climb up to 4%

NEW DELHI: Stocks of oil marketing companies (OMCs) jumped up to 4 per cent in an otherwise weak market on Wednesday.

BPCL surged 3.63 per cent to hit a high of Rs 777.65 on BSE. The OMC has received clearance from the environment ministry for a Rs 337 crore project at its Kochi Refinery in Kerala.

"Based on the recommendations of the Expert Appraisal Committee (EAC), the Environment Ministry has given coastal regulation zone (CRZ) clearance to BPCL's project 'laying heat traced pipeline' from south tanker berth to Kochi Refinery in Ernakulam, Kerala," a senior government official told the Economic Times.

HPCL rose 2.3 per cent to hit a high of Rs 707.80. IOC advanced 1.5 per cent to Rs 383.50.

At 11.25 am, the BSE Sensex was trading flat at 23,196.09, after falling over 200 points in morning trade.

Experts are positive on the OMCs given the firm refining margins, zero inventory loss on stable crude oil prices and healthy marketing profits.

OMCs have beaten consensus operating profit estimate by 10-35 per cent in the third quarter of this fiscal, and have emerged among the few companies where earnings per share have been upgraded by 5-10 per cent after the results, ET reported.