Shares of upstream oil producer Oil India fell as much as 2.55% to an intraday low of Rs 438.50 on Monday, tracking a sharp decline in global crude oil prices.
Contrastingly, shares of downstream oil marketing companies (OMCs) gained, with BPCL rising as much as 2.61% to Rs 318.30, HPCL climbing 3.02% to Rs 392.80, and IOCL advancing 1.98% to Rs 141.25.
The divergence reflects the different impact of lower crude prices on the sector. Oil India, an upstream explorer and producer, earns revenue from selling crude oil, making weaker oil prices negative for its earnings outlook.
On the other hand, BPCL, HPCL and IOCL, which are downstream refiners and fuel retailers, typically benefit from lower crude prices as they reduce raw material costs and can support refining margins.
At last check, Brent crude was down more than 4% at $87.66 a barrel, slipping below the $90 mark.
Oil prices retreated after Iran reportedly indicated it would suspend attacks as long as the United States refrains from further strikes, easing fears of prolonged supply disruptions after nearly two weeks of heightened tensions.
International benchmark Brent crude futures for September delivery fell nearly 5% to around $91.97 a barrel, while US West Texas Intermediate crude futures for September delivery declined 5.2% to $84.67 a barrel.
According to a Reuters report, citing a senior Iranian official, Tehran conveyed that it would halt attacks if the US also stopped military action, maintaining an "attack for attack" stance.
The reported pause came after Washington suspended its bombing campaign amid concerns over dwindling military targets and weapons stockpiles.
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