BPCL, Indian Oil, Asian Paints, JK Tyre: Oil-linked stocks slide as crude prices hover around $105/bbl

Trump said Wednesday the war with Iran may last two to three weeks and is nearly over.

Following the speech, oil prices jumped.

U.S. West Texas Intermediate crude futures for May gained 4.1% to $104.21 a barrel as of 9:45 p.m. ET. International benchmark Brent crude futures for June rose 5% to $106.42 per barrel.

Trump, in his speech, attributed the increase in oil prices to the “Iranian regime launching deranged terror attacks against commercial oil tankers and neighbouring countries that have nothing to do with the conflict".

Trump said the U.S. will “hit Iran extremely hard” over the next two or three weeks during a national address on Wednesday, while adding that the war won’t last long and discussions with Tehran “are ongoing", leaving a diplomatic resolution on the table.

“We are going to finish the job, and we’re going to finish it very fast,” he said.

Oil-linked stocks slide

Following the increase in crude oil prices, oil-sensitive stocks opened lower on Thursday.

Among oil marketing companies (OMCs), Bharat Petroleum Corporation (BPCL) was down over 4% at ₹269.30 on the NSE, while Hindustan Petroleum Corp (HPCL) shares were also down 4% at ₹322.15. Indian Oil Corporation (IOCL) stock was down 3.3% at ₹131.29 on the NSE.

Paints sector

Among paint stocks, Asian Paints was down 3% at ₹2,160.20, while Berger Paints India was down over 2% at ₹408.65. Kansai Nerolac Paints was trading over 1.4% lower at ₹173.11, and Indigo Paints shares were down 1.71% at ₹736.75 apiece on the NSE.

Tyre stocks

CEAT shares were down nearly 3% at ₹3,286.20 apiece on the NSE, while MRF Ltd was down nearly 2% at ₹1,26,630. Balkrishna Industries was down 3.69% at ₹2,049 on the NSE. Apollo Tyres was trading 2.41% lower at ₹405.25 on the NSE.

Aviation

Interglobe Aviation (IndiGo) was down over 4% at ₹4,012.10 apiece on the NSE, while SpiceJet shares were down nearly 3% at ₹9.69.

Impact of rising crude oil prices

Rising crude oil prices are generally negative for several sectors in India as they lead to higher input costs and margin pressures.

For oil marketing companies (OMCs) such as Indian Oil Corporation, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited, higher crude prices can compress marketing margins, especially if retail fuel prices are not fully passed on due to government intervention.

Tyre companies face cost pressures as crude-linked derivatives like synthetic rubber become more expensive, impacting players.

Similarly, paint companies like Asian Paints and Berger Paints see margins squeezed since a significant portion of their raw materials are crude-based.

The aviation sector is among the most sensitive, as fuel accounts for a large share of operating costs; rising aviation turbine fuel (ATF) prices directly hit profitability for airlines such as InterGlobe Aviation, particularly when demand conditions limit their ability to pass on higher costs through ticket prices.