Oil PSU shares hog limelight as US crude prices drop most since April

Shares of government-controlled oil marketing companies outperformed the broad market sentiment, with BSE Oil & Gas index emerging as the best sectoral performer with gains of 1.3 percent.

Investors goaded up on shares of oil PSUs in reaction to a sharp 2.5-4 percent drop in US crude prices on Wednesday, its biggest drop since April, on higher inventory levels. Falling crude prices always augur well for oil refining companies.

Further, foreign brokerage firm Nomura said oil retailers will continue to outshine as business outlook gets even better.

At 11am, shares of IOC jumped nearly 5 percent to Rs 409.90, Hindustan Petro Corp rose around 4 percent to Rs 766.60, Bharat Petro Corp gained 1.4 percent to Rs 900.35.

Other oil companies such as OIL India gained 1.2 percent to Rs 455.60, Reliance Industries rose nearly 1 percent to Rs 1,015.30 and Petronet LNG was up 0.8 percent at Rs 193.25. Shares of Cairn India, GAIL and Castrol India also traded in the green.