Oil marketing companies, paint stocks decline

New Delhi, Mar 2 (PTI) Shares of oil marketing companies and paint manufacturers declined on Monday in-line with a weak trend in equities as deepening conflict in West Asia drove crude oil prices higher.

The stock of Indian Oil Corporation tumbled 4.53 per cent, Hindustan Petroleum Corporation Ltd dropped 3.36 per cent, and Bharat Petroleum Corporation Ltd declined 2.81 per cent on the BSE.

"A sustained rise in oil remains a key monitorable for India, given its implications on inflation, fiscal math, and corporate margins. From a sectoral standpoint, oil marketing companies and paint manufacturers faced pressure on concerns over input cost inflation," Vikram Kasat, Head - Advisory, PL Capital, said.

Shares of Kansai Nerolac Paints fell by 3.77 per cent, Asian Paints declined 2.89 per cent, and Shalimar Paints dropped by 2.55 per cent.

Also, the stock of Berger Paints India dipped 1.67 per cent, Indigo Paints dropped 1.65 per cent, and Akzo Nobel India edged lower by 1.17 per cent.

Brent crude, the global oil benchmark, jumped 8.25 per cent to USD 78.92 per barrel.

"Rising crude oil prices and a weakening INR reflect concerns over potential disruptions to oil supply, which could increase inflationary pressures in India and impact fiscals and strain margins for energy and chemical-dependent sectors," Vinod Nair, Head of Research, Geojit Investments Limited, said.

The 30-share BSE Sensex tanked 2,743.46 points or 3.37 per cent to 78,543.73 in early trade. It later ended at 80,238.85, down 1,048.34 points or 1.29 per cent.

The 50-share NSE Nifty tumbled 575.15 points or 2.28 per cent to 24,603.50 in intra-day trade. The benchmark later settled 312.95 points or 1.24 per cent down at 24,865.70. PTI SUM DRR