Oil marketing companies are among the top losers in the Markets today

HPCL, BPCL and Indian Oil Co were among the top losers in the derivatives markets on fears that the ongoing depreciation of the Rupee will more than offset the decline in prices of crude oil, their main import.

The Rupee is at a 2-year low, its worst since Sept 2013, after China devalued its Yuan by 2 percent on Tuesday and let it weaken further on Wednesday in a bid to prop up its slowing economy via cheaper exports. A weaker Rupee makes Indian imports more expensive. Crude Oil, meanwhile, slipped to near April 2009 lows on fears of slow down in demand from China.

However, traders now expect the fall in the rupee to exceed the drop in crude oil prices, thereby negating whatever benefits that may have flowed into refiners' balance sheets.

As a consequence, HPCL dropped 70 rupees to 889.20 rupees. Indian Oil Corp slipped 25 rupees to 394 crores and BPCL lost 53 rupees to 877.50. Refiners took the first three losers slots on the futures market.

Image credit: Indiatimes