Oil marketing companies, paint makers, aviation stocks tumble as crude oil prices jump

New Delhi: Shares of oil marketing companies, paint manufacturers and aviation firms ended lower on Wednesday following a sharp surge in crude oil prices amid fresh tensions between the US and Iran. The stock of Hindustan Petroleum Corporation Ltd (HPCL) tumbled 4.60 percent, Indian Oil Corporation (IOC) dropped 3.51 percent and Bharat Petroleum Corporation Ltd (BPCL) declined 3.20 percent on BSE.

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Among aviation firms, shares of InterGlobe Aviation tumbled 5.02 percent and SpiceJet declined 3.04 per cent.

The stock of Shalimar Paints dropped 4.44 percent, Indigo Paints fell by 4.18 percent, Asian Paints edged lower by 2.49 percent, Berger Paints dipped 2.26 percent and Kansai Nerolac Paints slipped 1.95 percent.

Crude oil is a key raw material for paint manufacturing companies.

Brent crude, the global oil benchmark, jumped 6.18 per cent to USD 78.74 per barrel.

The 30-share BSE Sensex tanked 1,677.12 points, or 2.15 per cent, to settle at 76,503.60. On similar lines, the 50-share NSE Nifty tumbled 516.65 points, or 2.12 per cent, to end at 23,882.05.

"Markets witnessed a sharp sell-off on Wednesday, with benchmark indices posting their steepest single-day decline in over two months amid adverse global cues.The sharp decline was triggered by renewed geopolitical tensions after the US President indicated that the US-Iran peace deal is 'over', reigniting concerns over a prolonged conflict in the Middle East," said Ajit Mishra - SVP, Research, Religare Broking Ltd.

The escalation pushed Brent crude prices sharply higher, reviving worries over inflation and its potential impact on India's macroeconomic outlook, he added.

Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said, "Indian equity markets witnessed a sharp sell-off as US President Donald Trump declared the interim peace deal with Iran is 'over' following Iranian attacks on commercial vessels in the Strait of Hormuz, reigniting geopolitical tensions and raising fresh concerns over global energy supplies."

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Energy markets also came under renewed pressure as the escalating conflict heightened concerns over potential disruptions to crude oil supplies through the Strait of Hormuz, one of the world's most critical energy transit routes, he added.

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