Shares of crude oil-linked companies such as paints, tyres, oil marketing companies (OMCs) and aviation firms were under stress on Wednesday as oil prices continued to surge amid ongoing tensions between US and Iran.
Oil prices rose sharply to their highest in months on Wednesday after Iran launched more than a dozen ballistic missiles against American forces in Iraq, escalating the conflict between the two countries. Brent crude, a global oil benchmark, soared 2.3 per cent to about $69.83 a barrel, after hitting a day's high of $71.75, the highest since mid-September 2019.
Industry analysts reportedly said that market tension could ease as long as oil production facilities remain unaffected by attacks.
The BSE oil and gas index was trading 0.92 per cent, or 132 points, lower at 14,355. The index heavyweight Reliance Industries was trading 0.74 per cent lower at Rs 1,513.75 apiece. The stock touched an intraday low of Rs 1,508 against previous closing price of Rs 1525.05. Among others, state-owned Indian Oil Corporation was trading down 2.29 per cent at Rs 121, followed by Castrol India (Rs 125.00, down 1.61 per cent), ONGC (Rs 123.85, down 1.47 per cent), BPCL (Rs 455.20, down 1.25 per cent).
Also Read: Crude oil jumps to $71.75 after Iran attacks US forces in Iraq
Across the aviation space, shares of InterGlobe Aviation, which runs low-cost carrier IndiGo, was trading 0.56 per cent lower at Rs 1,356.95. The stock fell as much as 3 per cent to touch an intraday low of Rs 1322.65 after opening lower at Rs 1,330 against previous close level of Rs 1364.60. SpiceJet shares were down 2.36 per cent at Rs 99.10, after skidding over 4 per cent to Rs 97 in intraday trade. Bucking the trend, shares of Jet Airways, which has suspended its operation since April last year, were up 4.91 per cent at Rs 39.50.
Also Read: Days after top commander's death, Iran launches missile strike against US in Iraq
Among paint stocks, Asian Paints and Berger Paints shares fell between 1-2 per cent. Meanwhile, the benchmark S&P BSE Sensex was down 0.12 per cent, or 50 points, at 40,818 level, while the NSE was at 12,020-mark, down 32 points, or 0.27 per cent.
By Chitranjan Kumar