Crude-linked stocks are rallying on June 15 as oil prices fell after U.S. President Donald Trump said Washington had completed an agreement with Iran that would reopen the Strait of Hormuz, a key route for global crude shipments.
Investor sentiment improved after Trump said in a post on Truth Social that, "The Deal with the Islamic Republic of Iran is now complete." Hormuz would reopen without a toll system and the United States would end its naval blockade of Iran, he said. Brent crude futures for August delivery fell about 4% to $83.77 a barrel, while WTI crude futures for July delivery dropped 4.77% to $80.83 a barrel.
The sharp decline in crude oil prices sparked a rally across sectors that typically benefit from lower energy and raw material costs.
Oil Marketing Companies
Oil Marketing Companies (OMCs) emerged as key gainers, as cheaper crude is expected to improve marketing margins. Shares of Bharat Petroleum Corporation Limited surged more than 4.1%, while Hindustan Petroleum Corporation Limited climbed over 4% and Indian Oil Corporation advanced more than 3.7%.
Packaging and Adhesives
Packaging and advesive manufacturers are also seeing positive sentiment, as these manufacturers use polymers, polypropylene (PP), and high-density polyethylene (HDPE) as raw materials, which are heavily processed crude products.
Pidilite surged 2.53%, and Spreme Industries rose 2.69%.
Tyre Makers
Tyre manufacturers also saw strong buying interest, given that a significant portion of their raw material costs is linked to crude-based products such as synthetic rubber and carbon black. CEAT gained 3.85%, Apollo Tyres rose 3.03%, and MRF added 3.04%.
Aviation & Travel
The aviation and travel sector was another major beneficiary. Lower crude prices reduce aviation turbine fuel (ATF) costs, one of the largest expenses for airlines. Shares of InterGlobe Aviation climbed 3.85%, while SpiceJet jumped 4.53%.
In the travel space, Le Travenues Technology rallied 5.44%, Yatra Online gained 4%, and TBO Tek rose 9.92%.
Paints
Paint manufacturers, which use crude-derived inputs for a sizeable share of their raw material requirements, also traded higher, though gains were relatively muted. Berger Paints rose 3.45%, while Asian Paints India was up 2.71% and Kansai Nerolac Paints edged up 1.83%.
The limited reaction reflects the fact that many paint makers had already implemented price hikes to cushion the impact of earlier increases in crude prices, helping protect margins during the March quarter.
Benchmarks also opened higher, with Nifty trading 1.43% higher at 23,960 at 9:15 am, while Sensex up by 1.52% higher at 76,676.
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