Essar Oil tumbles 7% after company denies news of stake sale to Rosneft

Shares of Ruias-promoted Essar Oil has snapped its four-session winning streak in intra-day trade Tuesday, as investors trimmed their position after the recent run-up, with the stock taking a hit of nearly 7 percent a short while ago. Traders shunned their position in the counter after the company denied a report that appeared in a financial daily suggesting Russia’s Rosneft could buy a majority stake in Essar Oil. [caption id=“attachment_2297868” align=“alignleft” width=“380”]  Reuters image[/caption] “We would like to clarify that as on date there is no event, information or development in the Company which is required to be submitted as per clause 36 of the listing agreement,” Essar Oil said in a release issued to the BSE. At 1 pm, Essar Oil stock was quoted at Rs 141.65, down 3.3 percent from previous close on robust volumes of over 24 lakh shares traded on BSE as against two-week daily average volume of 6.93 lakh shares. In anticipation of some kind of positive development in the company, Essar Oil stock had surged 50 percent in last four trading sessions and also hit its new 52-week high on Monday before. In the last week of May, Essar Oil during its earnings announcement said its stand-alone net profit for the quarter ended March 31 fell 45 percent on year to Rs 546 crore owing to heavy inventory losses. Net revenue also declined 38 percent from a year ago level to Rs 15,609 crore, mainly due to drop in crude price in the fourth quarter.