Shares of oil producers Cairn India and Oil India were trading higher by over 2 per cent each in the morning trades after the crude oil prices jumped in the international markets.
Oil prices jumped as much as 6 percent on Wednesday as the dollar fell after the Federal Reserve indicated it preferred a more gradual path to normalizing U.S. interest rates despite being open to the first rate hike in almost a decade.
Benchmark Brent oil saw choppy moves earlier while U.S. crude prices fell after data pointing to the highest oil inventories in the United States in at least 80 years.
The dollar's tumble on the Fed's latest policy statement changed the market's direction.
The oil producers had been facing pressure since quite some time as the crude oil prices fell to multi-year low levels on the back of rising inventories amid slowing global growth. Fall in crude prices would impact the profitability of these companies.
Shares of Cairn India ended 0.5 per cent lower to Rs 222 and Oil India rose 1 per cent to Rs 483.
(With inputes from Reuters)
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