Press Esc to close
Friday 30 January 2015
News updated at 9:31 PM IST
Weather
Max: 28°C
Min : 17°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
A visitor takes a 'selfie' in front of an exhibit titled 'Circle Uncircled' by artist Rahul Kumar...

A visitor takes a 'selfie' in front of an exhibit titled 'Circle Uncircled' by artist Rahul Kumar...

A tightrope walker is silhouetted against the setting sun as she holds a balancing pole...

A tightrope walker is silhouetted against the setting sun as she holds a balancing pole...

Prime Minister Narendra Modi paying homage to Mahatma Gandhi on the occasion of his death...

Prime Minister Narendra Modi paying homage to Mahatma Gandhi on the occasion of his death...

President Pranab Mukherjee paying tributes to father of the nation, Mahatma Gandhi...

President Pranab Mukherjee paying tributes to father of the nation, Mahatma Gandhi...

Lawyers stop a train at Moradabad Railway Station on Friday during a protest demanding...

Lawyers stop a train at Moradabad Railway Station on Friday during a protest demanding...

An elderly woman and a boy stand outside their house with walls damaged in alleged firing from...

An elderly woman and a boy stand outside their house with walls damaged in alleged firing from...

New recruits of the Indian Border Security Force (BSF) take oath during a graduation ceremony...

New recruits of the Indian Border Security Force (BSF) take oath during a graduation ceremony...

A groom leads his horse in the equine pool after working out on the track, during early morning...

A groom leads his horse in the equine pool after working out on the track, during early morning...

A handler bathes a horse after a training session ahead of the Indian Derby in Mumbai...

A handler bathes a horse after a training session ahead of the Indian Derby in Mumbai...

Ladakhi women offering prayers during the inauguration of traditional Buddhist prayer...

Ladakhi women offering prayers during the inauguration of traditional Buddhist prayer...

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