Oil marketing companies, paint stocks dive amid sharp spike in oil prices

New Delhi, Mar 9 (PTI) Shares of oil marketing companies and paint manufacturers ended lower on Monday amid a sharp rally in crude oil prices due to the deepening conflict in West Asia, which has entered the second week.

Market analysts said that oil marketing companies came under pressure as higher crude prices threaten to squeeze their refining and marketing margins.

The stock of Bharat Petroleum Corporation Ltd dropped 6.12 per cent, Hindustan Petroleum Corporation Ltd tanked 5.05 per cent, and Indian Oil Corporation declined 4.30 per cent on the BSE.

Brent crude, the global oil benchmark, surged 14.17 per cent to USD 105.9 per barrel.

Shares of Shalimar Paints tumbled 4.18 per cent, Indigo Paints dropped 3.83 per cent, Asian Paints fell by 2.75 per cent, Kansai Nerolac Paints declined 2.09 per cent, and Berger Paints lost 1.88 per cent.

"The surge in oil prices had a direct impact on energy-linked sectors. Oil marketing companies such as Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation came under pressure as higher crude prices threaten to squeeze refining and marketing margins," Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.

The 30-share BSE Sensex tanked 1,352.74 points or 1.71 per cent to settle at 77,566.16, registering its second day of decline. On similar lines, the 50-share NSE Nifty dropped 422.40 points or 1.73 per cent to end at 24,028.05.

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. PTI SUM DRR