New Delhi, April 8 Shares of oil marketing companies surged on Wednesday, with HPCL rising by nearly 10 per cent, as crude oil prices sharply declined to fall below the USD 100 mark following the announcement of a two-week ceasefire by the US and Iran.
Brent crude, the global oil benchmark, dropped by 15.16 per cent to USD 92.54 per barrel.
The stock of Hindustan Petroleum Corporation Ltd (HPCL) jumped by 9.93 per cent, closing at Rs 364.30 on the BSE.
Shares of Bharat Petroleum Corporation Ltd (BPCL) rose by 7.44 per cent to Rs 298.05, and Indian Oil Corporation climbed by 6.62 per cent to Rs 143.40.
The stock markets also reacted positively to the ceasefire announcement. The 30-share BSE Sensex jumped by 2,946.32 points, or 3.95 per cent, to close at 77,562.90. The 50-share NSE Nifty soared by 873.70 points, or 3.78 per cent, to end at 23,997.35.
Oil marketing companies had been under pressure recently due to higher crude oil prices, which threatened to squeeze their refining and marketing margins.
"The benchmark equity indices witnessed a sharp rally on Wednesday, tracking firm global cues and a steep decline in crude oil prices following the announcement of a two-week ceasefire between the US and Iran," according to Bajaj Broking Research.
Among paint manufacturers, Shalimar Paints soared by 7.19 per cent, Indigo Paints climbed by 6.01 per cent, Kansai Nerolac Paints rallied by 5.45 per cent, Asian Paints advanced by 4.46 per cent, and Berger Paints went up by 1.55 per cent.