Shares of domestic oil refiners declined on worries that gross refining margins (GRM), a key metric of profitability, and inventory gains will come off in June-September quarter.Share price of Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd declined 7.26 per cent, 5.97 per cent and 7.56 per cent to Rs 387.90, Rs 870.55 and Rs 881, respectively. The BSE Sensex closed 354 points down at 27,512.26.
According to Reuters, April-June results were influenced by inventory gains but a 23 per cent slump in benchmark Brent QTD means less likelihood of such gains in September quarter.
HPCL’s June quarter GRM came at $8.56 per barrel. Indian Oil Corporation and BPCL are due to post earnings in the next few days.