Shares of oil-sensitive companies declined on Thursday as a sharp rise in global crude oil prices dampened market sentiment. Brent crude briefly crossed $126 per barrel, raising concerns about increased input costs and pressure on profit margins across several sectors.
Among the major losers were CEAT Limited, SpiceJet, and InterGlobe Aviation, with their stocks falling by as much as 5%. The spike in oil prices has intensified worries about rising fuel expenses and overall operational costs.
Brent crude futures rose as much as 3.63% to $122.31 per barrel after touching an intraday high of $126.41, marking the highest level since March 2022. The rally has been attributed to escalating geopolitical tensions in the Middle East, particularly concerns over potential supply disruptions linked to a US–Iran conflict.
Tyre manufacturers were among the hardest hit due to their reliance on petroleum-based raw materials. Alongside CEAT, Apollo Tyres and JK Tyre also saw declines as investors reacted to the prospect of higher production costs.
Aviation stocks also faced selling pressure. Rising crude prices directly impact aviation turbine fuel costs, a major expense for airlines. As a result, both SpiceJet and InterGlobe Aviation recorded notable losses during the session.
Oil marketing companies were not immune to the downturn. Stocks of Hindustan Petroleum Corporation Limited, Bharat Petroleum Corporation Limited, and Indian Oil Corporation slipped as investors assessed the impact of higher crude prices on margins and pricing flexibility.
Paint companies showed mixed performance. While Asian Paints edged lower, Berger Paints posted gains and Kansai Nerolac remained largely unchanged. These companies also depend on crude derivatives, making them sensitive to price fluctuations.
The broader market mirrored the negative trend. The BSE Sensex fell by 730 points (0.94%) to 76,766, while the Nifty 50 declined by 239 points to 23,939 in afternoon trading. Market breadth remained weak, with declining stocks outnumbering gainers.