New Delhi, March 4 Shares of oil marketing companies and paint manufacturers declined for the second consecutive day on Wednesday, as the deepening conflict in West Asia pushed crude oil prices higher.
The stock of Hindustan Petroleum Corporation Ltd fell by 5.41 per cent, Bharat Petroleum Corporation Ltd dropped by 4.94 per cent, and Indian Oil Corporation dived by 4.78 per cent on the BSE.
Brent crude, the global oil benchmark, jumped by 3.08 per cent to USD 83.91 per barrel.
Paint stocks also faced selling pressure. Shares of Shalimar Paints fell by 2.60 per cent, Berger Paints declined by 2.22 per cent, Indigo Paints slipped by 1.49 per cent, Asian Paints declined by 0.95 per cent, Kansai Nerolac Paints dipped by 0.89 per cent, and Akzo Nobel India edged lower by 0.28 per cent.
"The fragile global risk sentiment remained amid ongoing tensions in the Middle East and the closure of the Strait of Hormuz, which kept oil prices volatile. Indian equities mirrored the broader risk-off environment due to the impact of inflation and the potential for a higher current account deficit," Vinod Nair, Head of Research, Geojit Investments Limited, said.
The 30-share BSE Sensex tumbled by 1,122.66 points or 1.40 per cent to settle at 79,116.19. The 50-share NSE Nifty dived by 385.20 points or 1.55 per cent to end at 24,480.50.
"Given India's heavy reliance on oil imports, sustained strength in crude prices could put pressure on inflation and the current account, thereby keeping the market in a negative territory," Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, said.
According to Bajaj Broking, the escalating conflict and a spike in crude oil prices pushed markets into a phase of heightened uncertainty.
"Persistent selling by overseas investors continues to put pressure on domestic markets, triggering capital outflows and dampening liquidity as well as investor sentiment," it added.
