Why shares of IOC, BPCL and HPCL are under pressure post budget

Mumbai: Shares of state-run Indian oil marketing companies (OMCs) extended their losses on Monday, after closing lower on Friday, the day the Union Budget was presented in Parliament.

OMCs comprise Bharat Petroleum Corp Ltd (BPCL), Hindustan Petroleum Corp Ltd (HPCL) and Indian Oil Corp Ltd (IOC). OMCs’ stocks are down 3.5-6.4%, with IOC registering the sharpest fall.

This is not without a reason though. There are some discomforting elements in the budget for OMCs. First, the government intends to look at the cumulative shareholding of the government and other government companies to arrive at the 51% minimum ownership limit.