BPCL, IndiGo and Paint Stocks Slide as Crude Oil Trades Near $95
Shares of crude-sensitive companies dropped on Dalal Street as international crude benchmarks hovered near $95 per barrel, triggering selling pressure across oil marketing companies (OMCs), airlines, paint manufacturers, and tyre makers.
In international markets, global benchmark Brent crude traded around $95 per barrel despite a marginal decline, easing 0.61 per cent to $95.24 per barrel. Meanwhile, US West Texas Intermediate (WTI) crude shed 0.62 per cent to trade at $88.19 per barrel. Despite the slight intraday dip, crude prices remaining lodged near elevated levels renewed concerns over input cost inflation for domestic industries that rely heavily on oil and petroleum derivatives.
Oil Marketing Companies Lead Declines
State-owned oil marketing companies were among the biggest losers of the trading session, slipping by over 2 per cent as elevated raw material costs dampened gross refining and marketing margin expectations.
- Bharat Petroleum Corporation Limited (BPCL) led the declines among fuel retailers, falling over 2 per cent.
- Hindustan Petroleum Corporation Limited (HPCL) dropped 2.05 per cent to trade at ₹382.
- Indian Oil Corporation Limited (IOCL) slid 2.05 per cent to ₹143.
Commenting on the trend, Vipin Kumar, Assistant Vice President of Research at Globe Capital Market, indicated that the state refiners are witnessing a slight retracement following a previous run-up amid volatile crude fluctuations, characterising the movement as routine profit-taking.
Aviation and Consumption Plays Under Pressure
Aviation counters also faced sharp headwinds. InterGlobe Aviation, the operator of India’s largest carrier IndiGo, fell 2.6 per cent to ₹5,120. Aviation Turbine Fuel (ATF) constitutes upwards of 40 per cent of an airline's operating expenses in India, making carrier margins particularly vulnerable to sustained firmness in crude prices.
Paint and tyre manufacturers, which utilise petroleum-derived solvents, resins, and synthetic rubber, also witnessed downward pressure across the board:
- Asian Paints declined 0.6 per cent to ₹2,519.
- Kansai Nerolac Paints slipped nearly 1 per cent to ₹198.25.
- CEAT dropped 1.07 per cent to ₹3,513.
- Apollo Tyres shed over 0.4 per cent during the session.
Because India imports more than 85 per cent of its crude oil requirements, persistent price levels above $90 a barrel continue to pose margin headwinds for downstream domestic industries, keeping crude-sensitive counters volatile on Dalal Street.
