CEAT, SpiceJet, IndiGo Decline Up to 5% as Brent Crude Surpasses $126, Pressuring Crude-Sensitive Stocks

Crude Prices Spike to 3-Year High, Dragging Down Oil-Sensitive Stocks

Shares of companies sensitive to crude prices took a hit on Thursday, with CEAT, SpiceJet, and InterGlobe Aviation leading the decline, as Brent crude briefly surged to $126 a barrel. The sharp increase in oil prices has raised concerns over input costs, fuel expenses, and margin pressure across oil-linked sectors.

Brent crude futures rose as much as 3.63 percent to $122.31 a barrel, touching an intraday high of $126.41, the highest level since March 2022. The spike came amid concerns that the US-Iran conflict could worsen and lead to a prolonged disruption in Middle East oil supplies.

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Tyre stocks saw some of the sharpest declines, with CEAT, Apollo Tyres, and JK Tyre falling 4.86 percent, 2.65 percent, and 1.60 percent respectively. Tyre makers are sensitive to crude prices as several raw materials, including synthetic rubber and carbon black, are linked to crude derivatives.

Aviation stocks also traded weak, with SpiceJet falling 3.79 percent to Rs 13.44 and InterGlobe Aviation slipping 2.76 percent to Rs 4,226.10. Higher crude prices typically raise concerns over aviation turbine fuel costs, a major expense for airlines.

Oil marketing companies were also under pressure, with HPCL falling 2.14 percent, BPCL declining 1.38 percent, and IOC slipping 1.3 percent, as investors assessed the impact of elevated crude prices on margins and pricing flexibility.

Paint stocks were mixed, with Asian Paints falling 0.99 percent, while Berger Paints rose 1.18 percent and Kansai Nerolac traded nearly flat. Paint companies use crude-linked inputs such as solvents and resins, making sustained high crude prices a margin risk.

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The weakness in crude-sensitive stocks came as the broader market also traded lower. At 1:00 pm, the Sensex was down 730 points, or 0.94 percent, at 76,766, while the Nifty fell 239 points to 23,939. Market breadth remained weak, with 2,451 stocks declining against 1,243 advances.

The sharp spike in crude prices is being driven by the deepening US–Iran conflict and the disruption of oil flows through the Strait of Hormuz, a critical global energy chokepoint. The waterway typically carries about a fifth of the world's oil supply, and any restriction has an outsized impact on global prices.

Ongoing military tensions, a US-led blockade of Iranian ports, and repeated threats to commercial shipping have significantly curtailed tanker movement, tightening global supply. The situation remains fluid, with negotiations stalled and both sides hardening positions, raising the risk of a prolonged disruption.

If crude prices remain elevated, sectors with high fuel and crude-linked costs could stay under pressure, while market sentiment remains cautious amid geopolitical uncertainty.