Oil marketing companies (OMCs), paint, and tyre stocks came under heavy pressure on Monday after crude oil prices surged more than 10 per cent following attacks on two Saudi Arabian plants that slashed output in the world's top producer by half. US President Donald Trump blamed Iran for the attack, thus raising the possibility of a military strike on the country.
West Texas Intermediate jumped 10.68 per cent to $60.71 and Brent climbed 11.77 per cent to $67.31 in early Asia trading following the blasts at facilities run by state-owned giant Aramco. Brent oil prices hit a 28-year high, rallying to over $71 per barrel mark. READ MORE HERE
The attack by Tehran-backed Huthi rebels in neighbouring Yemen, where a Saudi-led coalition is bogged down in a five-year war, effectively shut down six per cent of the global oil supply. READ MORE
At 9:57 AM, the S&P BSE Oil & Gas index was down over 1.54 per cent as compared to 0.5 per cent dip in the benchmark S&P BSE Sensex. Among individual stocks, Indian Oil Corporation slipped 4 per cent to Rs 124.75 on the BSE while Bharat Petroleum Corporation (BPCL) dropped 6.6 per cent to Rs 383.40. Hindustan Petroleum Corporation Limited (HPCL) was down 6.6 per cent to Rs 252.90. On the other hand, Oil and Natural Gas Corporation Limited (ONGC) gained 3 per cent to Rs 132.90.
Paint stocks also slumped. Asian Paints dipped the most 3 per cent to Rs 1,501.25 on the BSE. Berger Paints was down 2.7 per cent to Rs 361.50, and Kansai Nerolac slipped 4.8 per cent to Rs 467.40.
Similarly, tyre stocks were also trading in the red. While both JK Tyre Industries and CEAT slipped below 2 per cent, Apollo Tyres Limited and MRF were down 1 per cent each.