A sharp surge in crude oil prices triggered divergent moves across energy-linked sectors on Monday, lifting upstream producers while dragging oil marketing companies and aviation stocks lower.
Crude price lifts upstream stocks but drags fuel-dependent sectors
Oil marketing, aviation and paint shares slide on rising input costs
Brent crude jumped towards $120 per barrel amid the prolonged closure of the Strait of Hormuz, constrained storage capacity in major producing nations, and fresh attacks on oil and gas infrastructure and transport vessels. The spike has intensified concerns over global supply disruptions.
Aamir Makda, Commodity & Currency Analyst, Choice Broking, said, crude oil price has marked its biggest jump since 2020.
The rise in energy prices, including crude oil, natural gas and coal, is expected to push inflation higher in the coming months and weigh on economic activity across major energy-importing nations such as India, Japan, China, South Korea and countries in Southeast Asia.
According to Dr V K Vijayakumar, Chief Investment Strategist, Geojit Investments, the worst-impacted segments will be those using crude inputs like paints, adhesives and tyres. Oil marketing companies, which will have to face a major burden of crude price hike also will be impacted. Domestic consumption themes like telecom, automobiles and financials are relatively safe. Defence and pharmaceuticals have the potential to remain resilient, he added.
Equity markets across Asia witnessed heavy selling pressure, with benchmark indices falling between 5 per cent and 8 per cent in morning trade. South Korea’s KOSPI hit a lower circuit for the second time in four trading sessions amid the broad-based sell-off.
Domestic market plunged. BSE Sensex slumped 2,495 points in today’s session, while Nifty 50 tanked 753 points.
Upstream oil producers benefited from the rally in crude prices in early trade as higher realisations are expected to support revenues. However, they reversed the trend during the session. Shares of ONGC rose 3 per cent in early trade, opening at ₹289. However, it shed nearly 3 per cent to close at ₹270.80 its previous close of ₹278.95. Oil India climbed 4 per cent to open at ₹503 compared to ₹484.50 earlier, but later trimmed gains to close at ₹474.05.
OMCs, paint and aviation stocks witness significant pressure
Oil marketing companies faced selling pressure as rising crude prices increase input costs and squeeze marketing margins. Shares of HPCL and BPCL ended 5-6 per cent lower at ₹384.55 and ₹331.15, respectively. They slumped more than 8 per cent to lows of ₹370.15 and ₹322.80. Indian Oil Corporation declined 4 per cent to ₹161.22.
Paint manufacturers also came under pressure since crude-based derivatives are key raw materials for the sector. Berger Paints and Asian Paints depreciated 1-2.5 per cent as investors factored in higher input costs.
Aviation stocks remained among the worst hit due to the dual impact of rising fuel expenses and operational disruptions linked to the West Asia conflict. Currency weakness further added to cost pressures. Shares of InterGlobe Aviation, which operates IndiGo, plunged more than 8 per cent to a 52-week low of ₹4,035. It settled 4 per cent lower at ₹4,236.70. SpiceJet also touched a 52-week low of ₹12.85 on the BSE. It ended nearly 7 per cent lower at ₹13.07.
Market participants caution that if crude prices remain elevated, cost pressures could intensify across sectors, influencing corporate earnings and investor sentiment in the near term.
On the technical front, Choice Broking analyst, said, today, the MCX Crude oil March contract has already touched the upper circuit of 18 per cent at 9868. Key support to be considered at 9000 – 8127, respectively. On the other hand, immediate resistance would be at 10,500 and breakout of this level will accelerate upside momentum in Crude oil price towards 11,300 in upcoming sessions.
Published on March 9, 2026
