New Delhi, April 8 Shares of oil marketing companies soared on Wednesday, with HPCL rising by 9%, as crude oil prices sharply declined to fall below the $100 mark following the announcement of a two-week ceasefire by the US and Iran.
Brent crude, the global oil benchmark, dropped by 14.03% to $93.87 per barrel.
The stock of Hindustan Petroleum Corporation Ltd (HPCL) jumped by 9% to Rs 361.35 on the BSE.
The shares of Bharat Petroleum Corporation Ltd (BPCL) rose by 8.83% to Rs 301.90 and Indian Oil Corporation climbed by 8.21% to Rs 145.55.
The stock markets also welcomed the announcement of the ceasefire. The 30-share BSE Sensex jumped by 2,988.82 points or 4% to 77,605.40 in late morning trading. The 50-share NSE Nifty surged by 890.35 points or 3.85% to 24,014.
"The key trigger is the announcement of a two-week pause in US military action, along with Iran's agreement to facilitate safe passage through the Strait of Hormuz. This has significantly reduced immediate concerns around disruptions in energy supply, which had been a major overhang for global markets," said Hariprasad K, Research Analyst and Founder, Livelong Wealth.