HPCL, IndiGo, Asian Paints Shares Decline Amid 4% Rise in Brent Crude Prices

Oil Prices Surge, Crude-Sensitive Shares Decline in India

Shares of Hindustan Petroleum Corporation, Bharat Petroleum Corporation, Indian Oil Corporation, and other crude-sensitive shares declined up to 2 percent in Wednesday's trade after Brent crude rose about 4 percent overnight to near USD 100 a barrel. The decline in oil marketing companies (OMCs) came amid higher crude oil prices and uncertainty over a possible peace agreement in West Asia.

Brent crude, the global oil benchmark, was trading 0.28 percent lower at USD 98.20 per barrel in futures trade. Analysts said prices had moved above the USD 98-a-barrel mark after US President Donald Trump warned of military action against Iran if a peace agreement was not reached before Wednesday. Trump's statement added to the uncertainty surrounding the situation, causing a ripple effect in the global oil market.

Shares of Key Oil Marketing Companies Decline

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Higher oil prices are seen as negative for India, the world's third-largest crude importer, as they can widen the fiscal deficit, push up inflation, and impact growth. Paint stocks also came under pressure due to rising input costs linked to crude oil. Shares of Asian Paints Ltd fell up to 1.7 percent to Rs 2,500 per share on the NSE.

Other shares that declined include Eternal, which fell 0.4 percent to Rs 258.41, and InterGlobe Aviation, the parent of IndiGo, which fell 0.81 percent to Rs 4,655. The decline in these shares is a reflection of the broader market trends and the impact of rising oil prices on various sectors.