Oil Marketing Stocks Jump In Early Trade On Ceasefire Signal

By Kotak News Desk
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08 Apr 2026 at 11:32 AM IST
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Market News
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4 minutes read

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Summary

Stocks of oil marketing companies jumped up to 9% in early trade following a drop in crude prices on a US-Iran ceasefire linked to the reopening of the Strait of Hormuz.

Shares of Hindustan Petroleum Corporation Limited (HPCL), Indian Oil Corporation Ltd (IOCL), and Bharat Petroleum Corporation Limited (BPCL) rallied up to 9% on Wednesday after global crude prices dropped sharply following a ceasefire announcement between the US and Iran.

At around 10:12 am, HPCL shares were trading at ₹358.95 a piece on the National Stock Exchange (NSE). At the same time, IOCL shares and BPCL shares were trading at ₹142.15 and ₹295.10, respectively.

Ceasefire Drives The Surge

The surge came after US President Donald Trump said a two-week ceasefire had been agreed, linked to the reopening of the Strait of Hormuz. The Strait handles about one-fifth of global oil flows. Following the ceasefire announcement, Brent Crude and West Texas Intermediate (WTI) also recorded a sharp fall.

At around 10:20 am, Brent crude June 2026 futures were trading at USD 95.61 per barrel, down by 12.50%, while WTI May 2026 futures declined by almost 14% to USD 97.21 per barrel.

Lower Crude Brings Cost Relief

The move matters immediately for oil marketing companies (OMCs). These firms depend heavily on crude as a raw material. A fall in prices reduces input costs and can support margins. The latest drop offers short-term relief after weeks of elevated prices driven by geopolitical tensions.

Brokerages Flag Price Band, Ongoing Risks

However, international brokerages said crude could find support in the $85–$90 range even if tensions ease. They feel markets may continue to price in risk around the Strait with Iran threatening the route more frequently, even after a peace deal.

Also Read - HFCL Shares In Focus After Subsidiary Wins ₹1,366-Crore Order

Upstream Oil Companies Record Decline

While the ceasefire brought cheers for OMCs, it resulted in a decline of share prices for upstream oil companies like Oil and Natural Gas Corporation (ONGC) and Oil India Ltd. At around 10:27 am, ONGC and Oil India shares were down by 3.07% and 3.82% on the NSE, respectively.

Sources:

The Economic Times

Business Standard

This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their own research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.

Investments in securities market are subject to market risks, read all the related documents carefully before investing. Brokerage will not exceed SEBI prescribed limit. The securities are quoted as an example and not as a recommendation. SEBI Registration No-INZ000200137 Member Id NSE-08081; BSE-673; MSE-1024, MCX-56285, NCDEX-1262.

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