Oil Retailers Fall on Petrol, Diesel Price Cut

Shares of state-run oil marketing companies HPCL, BPCL and Indian Oil fell on Tuesday after they cut the prices of petrol and diesel. 

The oil companies on Monday cut prices of petrol by Rs 2 per litre while the prices of diesel were reduced by 0.5 paise per litre. 

The cut in fuel prices will lower the margins of oil marketing companies, analysts say. Meanwhile, independent market expert Sharmila Joshi has an 'avoid' rating on BPCL.

"BPCL reported very good set of numbers in the last quarter. Numbers are unlikely to improve further whatever be the scenario. The best has been factored in for oil marketing companies, so the gains will be limited from here. Don't see further upside in the stock."

Also, impacting the sentiment, Brent crude prices soared 8 per cent yesterday. 

Shares of BPCL, HPCL and Indian Oil ended with loss of 2-3 per cent.