Oil stocks fall on weak crude prices; ONGC down over 2 pc

Mumbai, Jan 13: Shares of oil companies saw selling pressure today after global crude prices slid towards six-year lows. ONGC fell by 2.37 per cent to close at Rs 339.65 on the BSE.

The stock was the worst performer among the 30-Sensex blue-chips. Shares of Oil India Ltd lost 3.05 per cent, Reliance Industries Ltd (0.88 per cent) and Cairn India (0.57 per cent).

Led by losses in these scrips, the BSE oil and gas index fell by 1.06 per cent. These stocks fell on concerns that a sustained drop in oil may hit margins of oil related firms.

"...slump in oil prices made the overall mood of the markets grim," said Hiren Dhakan, Associate Fund manager, Bonanza Portfolio. Crude oil was dealt another blow Tuesday when key OPEC member the UAE said the cartel could not stop world prices plunging and called for a cut in US shale oil output.

Brent crude for February delivery fell USD 45.50 a barrel -- around its lowest point since April 2009. On Monday, it had plunged more than five percent to end below USD 50. In the broader market the benchmark Sensex slipped about 160 points to 27,425.73 amid fall in global crude prices.

PTI