Press Esc to close
Saturday 21 January 2017
News updated at 9:52 AM IST
Weather
Max: 28.9°C
Min : 15.3°C
In Bengaluru
Sunny day

Oil stocks gain as RBI opens special window for forex purchase

Mumbai, Aug 29, 2013, (PTI):
File photo.
Shares of state-owned oil marketing companies, IOC, HPCL and BPCL, today rose by up to 4 per cent after the RBI opened a special window to help the three firms needing about USD 8.5 billion every month to meet their daily foreign exchange requirement in a bid to check the rupee's free fall.

IOC's scrip went up by 3.6 per cent to Rs 214.10, while BPCL shares jumped 3 per cent to Rs 277 on the BSE.

Similarly, HPCL's scrip gained 3 per cent to Rs 168.90.

"RBI has opened forex window for oil marketing companies. It is likely to curb rupee pressure and volatility. Positive for overall markets for short to medium term," said Vivek Mahajan, Head of Research, Aditya Birla Money.

"On the basis of assessment of current market conditions, RBI has decided to open a forex swap window to meet the entire daily dollar requirements of three public sector oil marketing companies (IOC, HPCL and BPCL)," the central bank had said in a statement yesterday.

The PSU oil companies are the biggest buyers of dollar, requiring USD 8-8.5 billion every month for importing an average 7.5 million tonnes of crude oil. The RBI decision is aimed at curbing volatility in the forex market.

Under the swap facility, the RBI had said, it will "sell/buy USD-INR forex swaps for fixed tenor with the oil marketing companies through a designated bank."

The swap facility gets operationalised with immediate effect and will remain in place until further notice, it said.

 

Go to Top

Photo Gallery
American citizens attend a vigil for democracy and to pay a tribute to former U.S. President...

American citizens attend a vigil for democracy and to pay a tribute to former U.S. President...

President Barack Obama and first lady Michelle Obama pose with President-elect Donald Trump...

President Barack Obama and first lady Michelle Obama pose with President-elect Donald Trump...

Barron Trump and Eric Trump arrive for inauguration ceremonies...

Barron Trump and Eric Trump arrive for inauguration ceremonies...

President Donald Trump walks with first lady Melania Trump after walking...

President Donald Trump walks with first lady Melania Trump after walking...

Incoming VP Pence, President-elect Trump, outgoing President Obama and outgoing VP Biden...

Incoming VP Pence, President-elect Trump, outgoing President Obama and outgoing VP Biden...

Army officers stand on Indian Army's Pinaka multi-barrel rocket launcher system...

Army officers stand on Indian Army's Pinaka multi-barrel rocket launcher system...

75,000 people gather for a mass protest to support Jallikattu in Coimbatore...

75,000 people gather for a mass protest to support Jallikattu in Coimbatore...

Students of an art school apply finishing touches to a portrait of President elect Donald Trump...

Students of an art school apply finishing touches to a portrait of President elect Donald Trump...

A worker removes snow from the roof of a hotel on a sunny day in Gulmarg, west of Srinagar...

A worker removes snow from the roof of a hotel on a sunny day in Gulmarg, west of Srinagar...

President Pranab Mukherjee with West Bengal Governor KN Tripathi, Chief Minister...

President Pranab Mukherjee with West Bengal Governor KN Tripathi, Chief Minister...

Like us on Facebook

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523