OMCs, paint stocks rally as oil prices decline sharply

New Delhi: Shares of oil marketing companies and paint manufacturers climbed on Wednesday amid a steep decline in oil prices, which fell below the USD 100 per barrel-mark.

The stock of Hindustan Petroleum Corporation Ltd jumped 6.89 percent, Bharat Petroleum Corporation Ltd climbed 5.12 percent, and Indian Oil Corporation went up 4.22 percent on the BSE.

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Among paint manufacturers, shares of Indigo Paints climbed 3.77 percent, Asian Paints rallied 3.56 percent, Shalimar Paints advanced 2.33 percent and Berger Paints went up 1.67 percent.

Brent crude, the global oil benchmark, tanked 10.50 percent to USD 98 per barrel.

Helped by fag-end heavy buying, the 30-share BSE Sensex jumped 940.73 points, or 1.22 percent, to settle at 77,958.52. The 50-share NSE Nifty rallied 298.15 points, or 1.24 percent, to end at 24,330.95.

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"The trigger was largely global -- renewed optimism around a potential US-Iran peace deal led to a sharp decline in crude oil prices, offering immediate relief to an import-heavy economy like India," Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.

Oil-sensitive sectors outperformed, with IndiGo, BPCL, Asian Paints, and Pidilite gaining on the back of falling crude, which directly improved input cost dynamics and margins, he added.

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