Shares of oil marketing companies (OMCs) dropped on Monday as oil prices surged after OPEC+ announced a surprise oil production cut of more than 1 million barrels a day.
Oil prices posted their biggest daily rise in nearly a year. Shares of BPCL fell 4.1 per cent to finish at Rs 330, while that of HPCL dropped 4.7 per cent to end at Rs 226.
Shares of Indian Oil saw only a minor cut of 0.6 per cent.
Analysts said the Street is worried that a sustained increase in oil prices could put pressure on the margins for OMCs as the government may not pass the entire burden on to customers.
