OMCs under pressure; HPCL, BPCL hit 52-week lows, IOCL slips 3%

OMCs are likely to remain under pressure with the industry integrated gross margins trending towards zero despite the Russian discounted crude cushion, said analysts.

Shares of oil marketing companies (OMCs) were under pressure on Tuesday as Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL) hit their respective 52-week lows, while Indian Oil Corporation (IOCL) dipped 3 per cent on the BSE in intra-day trade. In comparison, at 02:30pm, the S&P BSE Sensex was down 0.38 per cent at 52,643 points.

The fall in stock prices comes on concerns of reduction in marketing margins ahead, which although, will be partly offset by higher gross refining margins (GRMs). 

Among the individual stocks, HPCL hit a 52-week low, down 6 per cent at Rs 213