New Delhi, Dec. 11 -- Shares of India's state-run oil marketing companies (OMCs) have declined 6-9% over the past month, hit by recent volatility in marketing margins. The margin on diesel fell to an 18-month low of negative Rs.0.3 per litre in the third week of November amid US sanctions on Russian firms that have disrupted diesel exports.

off in these stocks appears sentiment driven rather than rooted in fundamentals, given the gains from low crude oil prices, unchanged retail prices, and the drop in LPG under-recoveries. Brent crude is currently trading around $62 per barrel, compared with about $67 per barrel in the half year ending September (H1FY26) and $79 per barrel in FY25.

Several brokerages remain optimistic. "We feel street ...