- Rising crude prices pressured oil marketing, tyre, and paint stocks due to higher input costs
- Upstream oil producers ONGC and Oil India gained on prospects of stronger oil realisations
- Brent crude futures rose over 2% to near $99, WTI crude advanced over 3% amid Middle East tensions
Rising crude prices put pressure on oil marketing companies, tyre and paint stocks, while upstream producers ONGC and Oil India gained as higher oil prices improved the outlook for realisations.
Crude-sensitive stocks came under selling pressure on Tuesday as international oil prices climbed sharply towards the $100-a-barrel mark amid heightened tensions in the Middle East, raising concerns over higher input costs and renewed inflationary pressures.
ALSO READ : India's 7.8% GDP Debate: SBI Research Explains Why Rs 42 Lakh Crore Was Adjusted In New Series
Oil marketing companies (OMCs), tyre manufacturers and paint stocks were among the key laggards, while shares of upstream oil producers advanced, benefiting from the prospect of stronger realisations on higher crude prices.
Bharat Petroleum Corporation Ltd (BPCL) shares ended Tuesday at Rs 303.85, down Rs 9.05 or 2.89% on the NSE.
Hindustan Petroleum Corporation Ltd (HPCL) shares ended Tuesday at Rs 346.45, down Rs 10.45 or 2.93% on the NSE.
Indian Oil Corporation (IOC) shares ended Tuesday at Rs 134, down Rs 1.15 or 0.85% on the NSE.
ALSO READ : Govt Keeps Public Sector Bank Employee PLI Scheme For 2025-26 In Abeyance
Among tyre stocks, Apollo Tyres also traded lower, reflecting concerns that a sustained increase in crude prices could raise the cost of key raw materials and put pressure on margins.
Paint manufacturers faced similar concerns as crude-linked inputs account for a significant portion of their raw-material basket.
Brent crude futures rose more than 2% to around $99 a barrel after touching an intraday high of $99.22, the highest level since July 24.
US West Texas Intermediate (WTI) crude advanced more than 3% to around $94.40 a barrel.
The sharp move in oil prices followed reports of attacks by Iran-backed Houthis on Saudi energy facilities, with disruptions forcing some operations to be halted.
Iran's warning of possible "economic warfare" against the US further heightened concerns about an escalation in the region and potential disruptions to crude supplies and shipping routes.
In contrast, upstream producers gained from the rally. Oil India and ONGC were among the stocks that benefited as higher crude prices could translate into improved oil realisations and stronger earnings prospects.
The latest surge in crude prices has once again put the spotlight on India's vulnerability to oil-price shocks, given the country's high dependence on imported crude.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.