New Delhi, March 19 Shares of oil marketing companies plummeted on Thursday as escalating tensions in the Middle East drove crude oil prices sharply higher.
According to market analysts, oil marketing companies faced pressure as higher crude prices threatened to squeeze their refining and marketing margins.
Shares of Hindustan Petroleum Corporation Ltd fell by 7.42 per cent, hitting a 52-week low of Rs 323.35 on the BSE.
The stock of Bharat Petroleum Corporation Ltd dropped by 5.67 per cent to Rs 286.45, and Indian Oil Corporation declined by 3.70 per cent to Rs 143.
Brent crude, the global oil benchmark, surged by 6.25 per cent to USD 114.1 per barrel.
Stock markets also suffered heavy losses after a three-day rally, and were trading with significant declines. The 30-share BSE Sensex fell by 1,847.05 points, or 2.41 per cent, to 74,857.08 in the late afternoon trade. The 50-share NSE Nifty dropped by 587.40 points, or 2.47 per cent, to 23,190.40.
"Indian equity markets opened sharply lower with a significant gap-down, as rising crude oil prices and escalating geopolitical tensions triggered a strong risk-off sentiment across global markets," said Ponmudi R, CEO of Enrich Money.