BPCL, Asian Paints, and Other Crude-Sensitive Stocks Decline Amid Brent Oil Price Surge

Global Energy Supplies Under Threat as Iran and Israel Escalate Military Conflict

Shares of crude-sensitive companies traded lower on Monday, following a fresh military escalation between Iran and Israel, which has raised concerns over global energy supplies and input costs.

Brent crude oil prices rose about 4 percent to $97 per barrel after Iran launched missiles at Israel following Israeli strikes on Beirut, dampening hopes of a near-term resolution to the conflict. The surge in oil prices has had a ripple effect on various industries, with oil marketing companies and paint stocks coming under pressure.

HPCL, an oil marketing company, fell 1.68 percent to Rs 378.60, while BPCL declined 1.83 percent to Rs 289.60. Paint stocks also took a hit as higher crude prices could increase raw material costs. Asian Paints was trading at Rs 2,663.30, down 0.81 percent, while Berger Paints slipped 0.97 percent to Rs 485.40.

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Eternal, formerly known as Zomato, dropped 1.64 percent to Rs 252.30. Investors remained cautious as elevated fuel costs could weigh on delivery economics and margins for food delivery platforms.

Iran's ambassador to Moscow, Kazem Jalali, indicated that the Strait of Hormuz could remain open but under revised terms. However, any disruption or additional costs associated with transit through the waterway could further impact global crude prices. The Strait of Hormuz is a critical global shipping route through which roughly one-fifth of the world's oil supply typically passes.