Crude oil sensitive stocks surge amid sharp correction in Brent crude prices

New Delhi: Shares of crude oil sensitive sectors -- oil marketing companies, aviation, paints and adhesives -- jumped on Tuesday morning trade following a sharp correction in Brent crude oil prices amid hopes of a potential de-escalation in the Middle East conflict.

The stock of Hindustan Petroleum Corporation Ltd surged 5.26 per cent, Bharat Petroleum Corporation Ltd jumped 4.59 per cent and Indian Oil Corporation climbed 3.89 per cent on the BSE.

Shares of SpiceJet rallied 5 per cent and InterGlobe Aviation edged higher by 4.15 per cent.

"The dramatic developments in the West Asia culminating in US President Trump’s announcement of ceasefire indicate that the worst of the conflict is over. The sharp reactions in the crude oil and stock markets suggest the geopolitical situation limping back to normalcy. Paints, adhesives, tyres and OMCs will respond positively to the sharp cut in crude," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.

Kansai Nerolac Paints advanced 2.19 per cent, Asian Paints went up by 2 per cent, Indigo Paints climbed 1.88 per cent and Berger Paints rallied 1.69 per cent.

Global oil benchmark Brent crude dropped 2.60 per cent to USD 69.62 a barrel.

Stock markets rebounded in early trade on Tuesday. The 30-share BSE Sensex jumped 930.7 points to 82,827.49. The 50-share NSE Nifty surged 278.95 points to 25,250.85.