New Delhi, March 19 Shares of oil marketing companies closed sharply lower on Thursday, following soaring crude oil prices due to escalating tensions in the Middle East.
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 7.01 per cent to close at Rs 324.80 on the BSE. During the day, it plunged by 7.87 per cent to hit a 52-week low of Rs 321.80.
The stock of Bharat Petroleum Corporation Ltd declined by 5.83 per cent to Rs 286, and Indian Oil Corporation fell by 3.91 per cent to Rs 142.70.
Brent crude, the global oil benchmark, surged by 6.56 per cent to $114.4 per barrel.
Stock markets also took a heavy beating after a three-day rally and were trading with significant declines. The 30-share BSE Sensex plunged by 2,496.89 points or 3.26 per cent – its biggest single-day fall since June 2024 – to close at 74,207.24. The 50-share NSE Nifty tumbled by 775.65 points or 3.26 per cent to end at 23,002.15.
The sell-off was largely driven by a fresh escalation in geopolitical tensions in the Middle East, where renewed strikes between Israel and Iran targeting critical oil and LNG infrastructure have reignited concerns over global energy supply disruptions, an expert said.
Paint manufacturers also closed lower. Kansai Nerolac Paints lost 3.63 per cent, Asian Paints declined by 3.36 per cent, Indigo Paints fell by 2.84 per cent and Berger Paints dipped by 1.30 per cent on the BSE.
"Indian equity markets witnessed a sharp reversal today, breaking their three-day recovery rally and closing significantly lower, with benchmark indices declining by nearly 3.3 per cent," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.