New Delhi, April 8 -- Shares of oil marketing companies (OMCs) surged on easing crude prices, with Indian Oil Corporation Ltd (IOC) rising 8.2%, Hindustan Petroleum Corporation Ltd (HPCL) gaining 9%, and Bharat Petroleum Corporation Ltd (BPCL) advancing 8.8%. The rally comes after Brent crude prices plunged over 13% following reports of a two-week ceasefire between the US and Iran.

Declining crude prices provide significant advantages for downstream refiners, as they greatly lower raw material expenses and enhance gross refining margins (GRMs). The steep decline in oil prices has also alleviated worries about inflation and marketing losses, lifting sentiment for OMC stocks.

Analysts suggest that if crude prices stay at lower levels, the...