Paint stocks tumble amid sharp spike in oil prices
Shares of oil marketing companies and paint manufacturers tumbled on Monday morning trade amid sharp jump in crude oil prices due to the deepening conflict in West Asia.
Hindustan Petroleum Corporation Ltd tanked 8.67 per cent, Bharat Petroleum Corporation Ltd dropped 8.43 per cent and Indian Oil Corporation declined 7.29 per cent on the BSE.
Brent crude, the global oil benchmark, surged 24.71 per cent to $112.51 per barrel. Asian Paints fell by 5.12 per cent, Indigo Paints dropped 4.83 per cent, Berger Paints lost 4.80 per cent and Kansai Nerolac Paints declined 4.72 per cent.
The 30-share BSE Sensex crashed 2,494.35 points or 3.16 per cent to 76,424.55. The 50-share NSE Nifty tumbled 752.65 points or 3 per cent to 23,697.80. “Near-term sentiment remains pressured by escalating tensions in the Middle East, which have kept crude oil prices elevated and intensified concerns over inflation risks and India’s rising import bill.
“The sustained surge in energy prices is also reviving fears of macroeconomic strain, adding another layer of caution to market positioning,” Ponmudi R, CEO of Enrich Money, a line trading and wealth tech firm said.
The US and Israel launched military strikes on Iran on February 28, killing Ayatollah Ali Khamenei, Iran’s supreme leader.Following the military offensive, Iran has carried out a wave of attacks mainly targeting Israeli and American military bases in several Gulf countries, including the UAE, Bahrain, Kuwait, Jordan, and Saudi Arabia.
