Shares of state-run oil marketing companies slid on Friday, tracking a sharp rise in global crude prices that dampened investor sentiment across the energy segment.
Stocks of Hindustan Petroleum Corporation, Bharat Petroleum Corporation,and Indian Oil Corporation each declined by nearly one percent in morning dealings as Brent crude surged amid escalating geopolitical tensions.
HPCL shares fell 2 per cent to a low of ₹427.05 from the previous closing price of ₹434.70 on the BSE. BPCL dropped 1 per cent to ₹362.40 from its previous close of ₹367.70, while IOC also slipped 1 per cent to ₹172.40.
The uptick in crude prices followed tensions between the United States and Iran, heightening concerns about potential supply disruptions. For oil marketing companies, higher input costs typically translate into pressure on refining and marketing margins, especially when domestic fuel prices do not immediately reflect global movements. This dynamic often triggers cautious positioning by investors when crude markets turn volatile.
Market participants said the modest decline in OMC shares reflected expectations that sustained elevation in crude benchmarks could tighten profitability in the near term. While the price movement was limited, the sector remained sensitive to geopolitical developments and currency fluctuations, both of which influence import costs and inventory valuations.
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments, said, “Oil refiners made big gains in Q3 on falling/low crude prices. Now, with spiking crude, thanks to the US-Iran standoff, the situation has reversed. The margins of oil refiners will be impacted. The beneficiaries will be the upstream companies like ONGC and Oil India.”
Vijayakumar says the trend will remain volatile since the West Asian situation can change quickly. Crude will decline sharply in the event of a deal between India and the US.
Published on February 20, 2026