Indian Oil, IndiGo, Asian Paints And Other Oil-Linked Stocks Fall As Crude Prices Rise On US-Iran Tensions
Add Preferred News Source
The rise in international oil prices put pressure on companies exposed to fuel and crude-derived inputs on September 28. Airlines, oil marketing companies, paint makers and tyre manufacturers were among the sectors affected as markets assessed the latest developments in West Asia.
Indian Oil, Hindustan Petroleum (HPCL), Bharat Petroleum (BPCL), IndiGo and Asian Paints shares fell on Monday, September 28, as crude oil prices rose amid renewed uncertainty over the US-Iran peace process. Indian Oil declined 1.5% to ₹133.55, HPCL fell 1.9% to ₹344.30 and BPCL slipped 1.7% to ₹303.15, while IndiGo and Asian Paints dropped 1.7% and 1.2%, respectively.
The selling extended to tyre and gas stocks, with Apollo Tyres down 2% at ₹392.05, JK Tyre falling 2.1% to ₹338.30 and Mahanagar Gas declining 2.8% to ₹1,041. Adani Total Gas fell 2% to ₹599, while Reliance Industries was down 1.6% at ₹1,206.50. The Nifty Oil & Gas index fell 1.1% to an early low of 10,739.
Brent crude rose above $107 a barrel during Monday's session after renewed uncertainty over a possible US-Iran peace agreement. The latest move followed US President Donald Trump's rejection of Iran's proposal linked to reopening the Strait of Hormuz and ending the conflict, keeping concerns over oil supplies in focus.
Oil-Linked Stocks Under Pressure
Mahanagar Gas fell 2.8% to ₹1,041, while Adani Total Gas declined 2% to ₹599. Reliance Industries was also down 1.6% at ₹1,206.50.
For airlines, a sustained rise in crude can increase aviation turbine fuel costs and put pressure on operating margins. IndiGo is therefore among the companies being watched as oil prices remain elevated.
Paint and tyre manufacturers also remain sensitive to crude-linked raw materials. Asian Paints fell 1.2%, while Apollo Tyres and JK Tyre declined 2% and 2.1%, respectively, during the session.
Oil marketing companies such as Indian Oil, HPCL and BPCL face a different impact. Higher crude increases their procurement costs, while the extent to which those costs are reflected in domestic fuel prices can influence marketing margins.
What Triggered The Crude Price Move Today
The latest rise in crude prices came after renewed uncertainty over a possible US-Iran peace agreement. US President Donald Trump rejected Iran's latest peace proposal, which included measures linked to reopening the Strait of Hormuz and ending the conflict.
The Strait of Hormuz remains an important route for global oil shipments. Any disruption or prolonged uncertainty around the route can keep crude prices volatile and raise concerns about supply.
The move in oil prices therefore put different parts of the market under pressure on Monday, particularly businesses where fuel or crude-linked inputs have a direct bearing on costs.
What Are Experts Saying About Oil-Linked Stocks?
The reports available do not include a fresh analyst or research-house comment specifically on Monday's moves in Indian Oil, IndiGo or Asian Paints. The immediate market reaction, however, reflects the sensitivity of these businesses to higher crude prices and the potential impact on costs.
For oil marketing companies, the focus will be on crude procurement costs and marketing margins. For IndiGo, investors will track the impact of higher ATF prices, while paint and tyre companies will be watched for changes in raw-material costs.
What To Watch Next
Crude prices and developments around the US-Iran conflict will remain key triggers for these stocks. The market will also track developments around the Strait of Hormuz, as any change in supply risks could affect international oil prices.
For Indian Oil, HPCL and BPCL, the key factors will be crude costs, domestic fuel prices and marketing margins. For IndiGo, Asian Paints, Apollo Tyres and JK Tyre, the focus will remain on how higher energy and crude-linked input costs affect margins.
Also Read - Marine Electricals Shares Rise Over 5% On ₹250.78-Crore Order Wins
This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
Right Tools, Rich Insights
