By Malvika Gurung

Investing.com — In a choppy market on Tuesday, shares of two oil refinery companies rebounded as much as 20%, hitting new 52-week highs and defying the mood of the street, as stock indexes rose. fell by 1.07% and lost 623.1 points or 1.12%.

At the time of writing, shares of Miniratna CPSE Mangalore Refinery & Petrochemicals (NS:) rallied to its circuit above 20%, trading at Rs 108.6 each, while those of Chennai Oil Company Ltd (NS:) (CPCL) jumped 19.28% to Rs 383 each.

MRPL is a subsidiary of state-owned giant ONGC (NS:) and CPCL is a subsidiary of Indian Oil (NS:) Corporation.

Shares of both refineries soared on expectations of a strong business outlook, after Asian benchmark Singapore refining gross margins (a key indicator) peaked at $25.2/barrel, as the demand for refined products was increasing globally, giving impetus to Indian refiners.

From $8.1/barrel in Q4 FY22, Singapore’s GRM is expected to reach around $20/barrel in Q1FY23. On a YTD basis, the benchmark jumped more than four times, according to reports.

Additionally, shares of MRPL and CPCL have soared 145% and 234%, respectively, over the past three months, compared to a meager 4% increase for Sensex.

Exchanges have revised the circuit limit for shares of these two oil refineries to 20% from 5% earlier, effective today, a syndicated newsfeed noted.