Asian Paints, BPCL, MRF, Apollo Tyres Among Crude-Sensitive Stocks Slip as Oil Prices Edge Higher

Market Performance

Indian equities witnessed pressure on select crude-sensitive counters on August 22 as a fresh spike in oil prices rippled across sectors. Paint makers, tyre manufacturers, and oil marketing companies (OMCs) came under selling pressure, with most stocks closing in the red.

The trigger: oil prices inching higher amid heightened geopolitical tensions, once again spotlighting input cost worries for these industries.

• Brent Crude futures climbed 0.3% to about $67.85 per barrel
• WTI Crude futures gained 0.33%, hovering close to $64 per barrel

For companies dependent on crude derivatives, every uptick translates to cost challenges—something the market was quick to price in.

Main News

The ongoing Russia-Ukraine conflict remains the biggest driver behind volatility in global oil. Hopes of US-brokered peace talks faded after one of Russia’s most aggressive attacks in recent months.

• Russia launched 574 drones and 40 missiles in overnight strikes
• The assault left 1 dead and 22 wounded, as confirmed by Ukrainian authorities

Ukrainian President Volodymyr Zelenskyy described the missile strike on a US-owned electronics firm as a signal of Moscow’s unwillingness to negotiate. His statement underscored how peace initiatives are losing ground, keeping oil traders on edge.

Meanwhile, Russian President Vladimir Putin’s stance has hardened. Demands for Ukraine to cede the eastern Donbas region, abandon NATO ambitions, and restrict Western troops have further complicated diplomatic efforts.

Against this backdrop, crude prices saw yet another push upward—impacting Indian markets directly.

Company-Wise Stock Movement

Paint Sector

Paint companies were the first to feel the heat as crude is a critical raw material:

• Asian Paints: down 2%, trading near ₹2,511 per share
• Indigo Paints: slipped 1.5%, at ₹1,122
• Berger Paints: down nearly 1%, around ₹525

Tyre Manufacturers

Rubber and synthetic inputs, closely tied to crude, made tyre stocks vulnerable:

• MRF: fell nearly 1%
• Apollo Tyres: ended in the red with marginal losses
• JK Tyre: also down marginally
• Balkrishna Industries: declined close to 1%

Oil Marketing Companies (OMCs)

Fuel retailers mirrored the pressure as margins stayed in focus:

• Bharat Petroleum (BPCL): down 1.2%
• Hindustan Petroleum (HPCL): slipped close to 1%
• Indian Oil Corporation (IOC): lower by nearly 1%

Global Backdrop Weighing on Sentiment

The pressure isn’t limited to India. The geopolitical tussle is also shaping global trade dynamics. Reports suggest:

• Trump has floated a 50% tariff on Indian imports, citing New Delhi’s oil trade with Moscow
• Russian officials indicated oil supplies to India would continue despite Western pressure
• Moscow also hinted at the possibility of trilateral discussions with India and China

This combination of rising input costs and shifting global equations is keeping investors cautious.

Summary

Crude-sensitive stocks across paints, tyres, and OMCs faced the brunt of higher oil prices on August 22. The rise in Brent and WTI, though marginal, carried significant weight given the backdrop of escalating Russia-Ukraine tensions and fading hopes of US-led peace talks.

• Paint stocks—Asian Paints, Indigo Paints, Berger Paints—closed lower
• Tyre makers—MRF, Apollo Tyres, JK Tyre, Balkrishna Industries—slipped
• OMCs—BPCL, HPCL, IOC—lost ground

With geopolitical uncertainty showing no signs of easing, oil remains the swing factor for these sectors.