Source : PTI | Shares of oil marketing companies, aviation and paint manufacturers rallied on Monday amid a sharp decline in crude prices.
The stock of Hindustan Petroleum Corporation Ltd rallied 3.36 per cent, Bharat Petroleum Corporation Ltd edged higher by 2.71 per cent, and Indian Oil Corporation climbed 2.48 per cent on the BSE.
Shares of SpiceJet surged 6.72 per cent, and InterGlobe Aviation went up by 3.59 per cent.
Among paint manufacturers, JSW Dulux rallied 2.15 per cent, Indigo Paints climbed 1.30 per cent, Shalimar Paints advanced 0.82 per cent, Berger Paints gained 0.75 per cent, and Kansai Nerolac Paints went up marginally by 0.18 per cent.
Brent crude, the global oil benchmark, dropped 4.55 per cent to $83.36 per barrel.
“Oil-sensitive segments such as aviation, paints, tyres, and cement continued to attract buying interest following the sharp decline in crude oil prices,” Ajit Mishra – SVP, Research, Religare Broking, said.
Shares of oil marketing companies, aviation and paint manufacturers ended higher on Friday also.
The US and Iran finalised a deal to end their 107-day war and open the Strait of Hormuz, the narrow waterway used to ferry one-fifth of the global oil supplies, after an in-person signing of the agreement in Switzerland scheduled on Friday.
US President Donald Trump made the announcement on Truth Social on Sunday evening, easing pressure on the global energy markets, as officials said the peace agreement would be signed on June 19 in Switzerland.
“On the macro front, Brent crude tumbled nearly 5 per cent to around $82.9 per barrel, its lowest level since March, providing relief to India’s inflation outlook and external balances,” Siddhartha Khemka – Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, said.
A reopening or normalisation of shipping through the Strait of Hormuz would provide significant relief for India, one of the world’s largest crude importers, by easing concerns over oil supplies, lowering freight costs and reducing pressure on inflation.
The narrow waterway between Iran and Oman handles roughly a fifth of global oil consumption and serves as the primary export route for major Gulf producers, including Saudi Arabia, Iraq, Kuwait, the United Arab Emirates and Qatar – all key energy suppliers to India.
Supply of crude oil – the raw material for making fuels like petrol and diesel – and natural gas – the feedstock used to generate electricity, produce fertiliser, turned into CNG to run automobiles and piped to household kitchens for cooking – through the strait was disrupted since the start of the Iran war in February end. This had triggered sharp increases in crude oil prices, shipping insurance premiums and freight rates.
