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OMCs, banks slump as US military kills top Iranian military commander

Brent Crude Futures surged over 3 per cent to trade at $68.25 per barrel-mark. The West Texas Intermediate, too, gained 2.71 per cent to $62.84 per barrel.

SI Reporter  |  New Delhi 

oil
oil

Shares of oil-related companies, including Bharat Petroleum Corporation (BPCL), Hindustan Petroleum Corporation (HPCL), Asian Paints, Berger Paints, and financial counters were under pressure on Friday after US military killed Iranian Revolutionary Guard's commander Qasem Soleimani on orders by US Preseident Donald Trump. The air-strike, which also killed the deputy chief of Iraq's powerful Hashed al-Shaabi paramilitary force, has flared up tensions in the middle-east region.

"General Soleimani was actively developing plans to attack American diplomats and service members in Iraq and throughout the region. General Soleimani and his Quds Force were responsible for the deaths of hundreds of American and coalition service members and the wounding of thousands more," Pentagon, the US Department of Defence said. READ MORE

Brent Crude Futures surged over 3 per cent to trade at $68.25 per barrel-mark. The West Texas Intermediate, too, gained 2.71 per cent to $62.84 per barrel. In the forex market, the rupee depreciated to a one-month low of Rs 71.61 against the US dollar.

In the early deals, oil-marketing firm HPCL declined 2.5 per cent to Rs 262.85 on the BSE, while BPCL dipped 1.6 per cent to hit an intra-day low of Rs 479.4. Reliance Industries, Indraprastha Gas Ltd (IGL), and Indian Oil Corporation (IOC), too, slumped up to 0.66 per cent. In comparison, the S&P BSE Sensex was down 0.28 per cent, or 117 points, at 41,509.28 level at 9:57 am.

That apart, paint firms such as Asian Paints, Berger Paints, and Kansai Nerolac erased 1.8 per cent, 1.1 per cent, and 0.5 per cent, respectively.

Aviation firms SpiceJet and IndiGo, where crude oil makes nearly 40 per cent of their cost structure, tumbled 4.3 per cent and 2.16 per cent, respectively.

Financial counters came under pressure, too, as rise in crude stoked fears of further rise in inflation, which could push yields higher. Nifty PSU Bank index, down 0.84 per cent, was the top loser on the Nationnal Stock Exchange (NSE). Bank of Baroda, Canara Bank, Punjab National Bank (PNB), State Bank of India (SBI), Uco Bank, and Bank of India declined between 0.8 and 2.2 per cent. Similarly, was trading 0.8 per cent lower with Axis Bank, ICICI Bank, The Federal Bank, and HDFC Bank down 1.18 per cent, 0.7 per cent, 0.9 per cent, and 1.1 per cent, respectively.

First Published: Fri, January 03 2020. 09:57 IST
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