Market Performance
Crude-sensitive stocks saw sharp volatility on June 13 after crude oil prices spiked due to escalating geopolitical tensions. A sharp rise in global oil benchmarks led to a steep fall in oil marketing companies while upstream oil producers gained momentum.
Main News
Brent Crude surged over 9%, hitting a multi-month high of $75.61 per barrel, while WTI Crude also rose over 9%, reaching $74.39 per barrel.
This surge followed Israel's military strikes on Iran, which it described as a preemptive move targeting Iran's nuclear and military infrastructure. Reports of multiple explosions across Tehran, as confirmed by Iran's state media, have escalated concerns about regional stability and potential further hikes in oil prices.
Company Details
HPCL, BPCL, IOC Share Price Reaction
The spike in crude prices directly impacted Oil Marketing Companies (OMCs):
- HPCL's share price dropped by around 4.5%
- BPCL share price fell by over 4%
- IOC share price declined by around 3%
ONGC and Oil India Share Price Movement
In contrast, upstream oil companies benefited:
- ONGC share price rose by up to 3%
- Oil India's share price gained by up to 3%
Other Sector Impact
Paint Stocks
- Asian Paints dipped by around 2%
- Indigo Paints and Berger Paints declined by around 4%
Tyre Stocks
- Apollo Tyres fell 2%, trading at ₹448
- MRF, India's most expensive stock, dropped over ₹400 per share (a decline of 0.31%), hovering around ₹1.36 lakh
Summary of the Article
The ongoing geopolitical conflict between Israel and Iran has triggered a sharp rise in global crude oil prices, causing significant fluctuations in the Indian stock market. While downstream companies like HPCL, BPCL, and IOC suffered due to margin pressures, upstream players such as ONGC and Oil India gained expectations of higher revenues.
The share price movements of HPCL, BPCL, IOC, ONGC, and Oil India highlight the immediate sensitivity of energy stocks to global events, especially those impacting crude supply chains.
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