Centre Cuts Fuel Prices: IOC, BPCL, HPCL Stocks Tank After Getting Downgraded by Goldman Sachs & Citigroup
The S&P BSE Energy Index tumbled 6.7 percent, the most since August 2015.
Mumbai, October 5: Goldman Sachs and Citigroup has downgraded the stocks of state-run fuel retailers after the government on Thursday asked them to reduce retail petrol and diesel prices. According to a Mint report, Citigroup has downgraded Bharat Petroleum Corp Ltd (BPCL), Hindustan Petroleum Corp Ltd (HPCL) and Indian Oil Corp Ltd (IOC) to sell, while Goldman Sachs has lowered the first two companies to sell. Fuel Prices Cut: List of States Where Petrol And Diesel Will Cost Rs 5 Per Litre Lesser.
BPCL stock is currently trading at Rs 271.60, down 20 percent. HPCL has slumped 21 percent and is currently at Rs 172.85. IOCL is at Rs 122, down 13 percent. Fuel Rates Today: Petrol And Diesel Not Down by Rs 5 Per Litre in Several Cities Despite Centre, State Price Cut; Here's Why.
In an urgent media briefing over concerns on the rising fuel, Finance Minister Arun Jaitley on Thursday announced that petrol and diesel prices will be cut by Rs 2.50 per litre with immediate effect. He said that while the Centre has cut excise duty on petrol and diesel by Rs 1.50 per litre, the Oil Marketing Companies (OMCs) will further reduce prices by Re 1 per litre.
Reportedly, just after the announcement, the refiners’ stocks slumped. The S&P BSE Energy Index tumbled 6.7 percent, the most since August 2015, while each of the three state-run refiners closed more than 10 percent lower.
(The above story first appeared on LatestLY on Oct 05, 2018 10:49 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).