Oil companies down on fuel price hike delay fears

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Shares in oil marketing companies -- HPCL, BPCL, IOC -- fell on fears the much anticipated fuel price hike would get delayed, two dealers said.

Soaring oil prices will also lead to higher under recoveries, added an institutional dealer. The Congress party's setback in crucial state elections is widely feared to keep reforms on hold and reverse a slowdown in economic growth.

"There is a buzz in the market that fuel price hike would be delayed due to the election outcome," said Anup Chandak, senior manager, advisory, at Sharekhan. In a report on February 27, Macquarie said that investors should brace for on oil shock in India.

At 11:49 a.m, shares of HPCL, BPCL and IOC were down 1.3-2.6 per cent.