India, May 25 -- Oil marketing company stocks rallied sharply on Monday after state-run fuel retailers increased petrol and diesel prices for the fourth time in 11 days. The latest fuel price hike boosted investor sentiment amid expectations of improving marketing margins and stronger earnings visibility for OMCs.

The rally was further supported by a sharp correction in global crude oil prices following progress in US-Iran negotiations. Lower crude prices are expected to reduce input costs for fuel retailers, while higher domestic fuel prices could improve refining and fuel marketing profitability in the coming quarters.

Stocks in focus: Among oil marketing companies, Hindustan Petroleum Corporation surged 6 percent, while Bharat Petrol...