Oil marketing companies rallied on Tuesday after announcing an increase in the retail price of diesel of Rs 1.09 per litre (excluding state levies) with effect from midnight of May 12 and 13, 2014.

Even after the proposed price increase, diesel shall still be left with an under- recovery of Rs 5.71/litre (based on pricing cycle applicable for 1st fortnight of May 14).

IOCL rallied the most with gain of 4.55%, followed by BPCL (3.65%)  and HPCL (1.42%).