Oil, paint shares tumble on crude surge

Metro India News | NEW DELHI

Shares of oil marketing companies and paint manufacturers fell sharply on Monday following a surge in global crude oil prices amid escalating conflict in West Asia, which has now entered its second week.

Market analysts said that rising crude prices are likely to squeeze refining and marketing margins for oil companies, creating pressure on energy-linked stocks. Bharat Petroleum Corporation Ltd shares fell 6.12 per cent, Hindustan Petroleum Corporation Ltd declined 5.05 per cent, and Indian Oil Corporation lost 4.30 per cent on the BSE.

Brent crude, the global oil benchmark, surged 14.17 per cent to USD 105.9 per barrel, marking a significant jump amid geopolitical tensions. Paint stocks were also impacted as rising crude oil prices increase raw material costs for the sector. Shalimar Paints dropped 4.18 per cent, Indigo Paints fell 3.83 per cent, Asian Paints lost 2.75 per cent, Kansai Nerolac Paints slipped 2.09 per cent, and Berger Paints declined 1.88 per cent.

“The surge in oil prices has directly impacted sectors linked to energy. Oil marketing companies are facing pressure as higher crude costs threaten refining and marketing margins,” said Hariprasad K, Research Analyst and Founder of Livelong Wealth.

The 30-share BSE Sensex fell 1,352.74 points, or 1.71 per cent, to close at 77,566.16, recording its second consecutive day of decline. Similarly, the 50-share NSE Nifty dropped 422.40 points, or 1.73 per cent, to end at 24,028.05.

The recent volatility in oil markets comes after the US and Israel carried out military strikes on Iran on February 28, resulting in the death of Iran’s supreme leader Ayatollah Ali Khamenei. In response, Iran has launched a series of attacks targeting Israeli and American military bases across Gulf nations, including the UAE, Bahrain, Kuwait, Jordan, and Saudi Arabia.

The geopolitical tensions are expected to continue influencing global oil prices, which in turn could keep pressure on energy and paint sectors in India in the coming weeks.