HPCL, BPCL: OMCs, paint, tyre, aviation stocks rally after oil slips 5%

BPCL, HPCL, IOC, Asian Paints, and other downstream oil companies' stock surged, while ONGC, Oil India dropped after Brent crude oil slipped 5 per cent

Oil marketing companies (OMCs), paint, aviation, and tyre stocks jumped up to 5 per cent in trade on Tuesday, June 24, 2025,  after Brent crude oil futures fell. However, upstream oil companies involved in the exploration and production (E&P) of oil and natural gas, stocks traded mixed. Last checked, Brent crude oil was down 4.99 per cent at $67.91 per barrel. 

 

The oil prices cooled after US President Donald Trump announced Iran and Israel had agreed to a ceasefire. Writing on his Truth Social site, Trump implied a ceasefire would go into effect in 12 hours, after which the war would be considered "ended".

OMCs edge higher 

For OMCs, lower crude oil prices reduce their procurement costs, enabling them to offer fuel at lower prices, potentially increasing demand and margins. 

 

At the last count, Hindustan Petroleum Corporation (HPCL) was up 4.39 per cent, Bharat Petroleum Corporation (BPCL) 3.29 per cent, and Indian Oil Corporation (IOC) 2.93 per cent. Overall, the stocks gained up to 5 per cent in intraday trade.   CATCH STOCK MARKET UPDATES TODAY LIVE

Tyre and paint stocks rally

A decrease in oil prices leads to lower raw material costs for paint and tyre manufacturers, as petroleum-based products like synthetic rubber and chemicals used in paints become cheaper, improving profit margins. 

 

In Tuesday's trade, paint stocks rose up 2 per cent. Last checked, Asian Paints shares were up 1.21 per cent, Kansai Nerolac 1.91 per cent, and Berger Paints 0.42 per cent. 

 

Meanwhile, tyre stocks rallied up to 2 per cent. At the last count, Ceat was up 1.34 per cent, MRF 0.36 per cent, JK Tyre 1.23 per cent, and Balkrishna Industries 0.38 per cent. 

Aviation shares fly 

In the case of aviation stocks, when oil prices decrease, aviation fuel becomes cheaper, directly reducing operating costs for airlines and improving their profit margins.

 

Last seen, InterGlobe Aviation or IndiGo was up 3.45 per cent and SpiceJet 4.52 per cent. Airlines stock flew up to 5 per cent in trade.   ALSO READ | Happy Markets Day: Sensex zooms 900 pts intraday on Iran-Israel ceasefire

Oil upstream companies' shares mixed 

Last checked, Oil and Natural Gas Corporation (ONGC) was down 2.25 per cent and Indian Oil 3.47 per cent. However, Reliance Industries (RIL) stock was up 1.05 per cent. 

How does a slip in oil prices impact upstream companies?

Lower oil prices reduce the revenue of these companies, leading to tighter profit margins, decreased investment, and potential cuts in production.