A sharp surge in crude oil prices triggered divergent moves across energy-linked sectors on Monday, lifting upstream producers while dragging oil marketing companies and aviation stocks lower.
Crude price lifts upstream stocks but drags fuel-dependent sectors
Oil marketing, aviation and paint shares slide on rising input costs
Brent crude jumped towards $120 per barrel amid the prolonged closure of the Strait of Hormuz, constrained storage capacity in major producing nations, and fresh attacks on oil and gas infrastructure and transport vessels. The spike has intensified concerns over global supply disruptions.
The rise in energy prices, including crude oil, natural gas and coal, is expected to push inflation higher in the coming months and weigh on economic activity across major energy-importing nations such as India, Japan, China, South Korea and countries in Southeast Asia.
Equity markets across Asia witnessed heavy selling pressure, with benchmark indices falling between 5 per cent and 8 per cent in morning trade. South Korea’s KOSPI hit a lower circuit for the second time in four trading sessions amid the broad-based sell-off.
Domestic market plunged. BSE Sensex slumped 2,495 points in today’s session, while Nifty 50 tanked 753 points.
Upstream oil producers benefited from the rally in crude prices as higher realizations are expected to support revenues. Shares of ONGC rose 3 per cent in early trade, opening at ₹289 before easing to ₹278.50 at 9.32 am on the NSE, close to its previous close of ₹278.95. Oil India climbed 4 per cent to open at ₹503 compared to ₹484.50 earlier, but later trimmed gains to trade 2 per cent lower at ₹476.45.
OMCs, paint and aviation stocks witness significant pressure
In contrast, oil marketing companies faced selling pressure as rising crude prices increase input costs and squeeze marketing margins. Shares of HPCL and BPCL slumped more than 8 per cent to lows of ₹370.10 and ₹322.80, respectively. Indian Oil Corporation declined over 7 per cent to ₹156.30.
Paint manufacturers also came under pressure since crude-based derivatives are key raw materials for the sector. Berger Paints and Asian Paints fell around 5 per cent as investors factored in higher input costs.
Aviation stocks remained among the worst hit due to the dual impact of rising fuel expenses and operational disruptions linked to the West Asia conflict. Currency weakness further added to cost pressures. Shares of InterGlobe Aviation, which operates IndiGo, plunged more than 8 per cent to a 52-week low of ₹4,035. SpiceJet also touched a 52-week low of ₹12.85 on the BSE.
Market participants caution that if crude prices remain elevated, cost pressures could intensify across sectors, influencing corporate earnings and investor sentiment in the near term.
Published on March 9, 2026