BPCL

Shares of aviation, paint and oil marketing companies (OMCs) came under pressure in early trade on Monday as crude oil prices surged following renewed military tensions between the United States and Iran, raising concerns over higher input costs and weaker profitability for fuel-intensive sectors. The benchmark indices also traded sharply lower, with the Sensex falling 633 points, or 0.82 percent, to 76,936.04, while the Nifty slipped 184 points, or 0.76 percent, to 24,022.45. India VIX jumped more than 9 percent, signalling a sharp rise in market volatility. InterGlobe Aviation (IndiGo) and Asian Paints were among the top losers on the Nifty 50 as investors reacted to the spike in crude prices. IndiGo declined 2.3 percent to around Rs 5,189. Airlines are particularly vulnerable to rising oil prices, as aviation turbine fuel (ATF)—a crude oil derivative—is their largest operating expense. Any sustained increase in fuel costs can weigh on margins unless carriers offset the impact through higher airfares. Paint manufacturers also witnessed selling pressure because crude-based derivatives are key raw materials used in producing paints and coatings. Asian Paints fell 1.6 percent, Berger Paints slipped nearly 1 percent, Kansai Nerolac declined around 0.5 percent, while Indigo Paints also traded lower. Oil marketing companies were among the other major losers, as higher crude prices increase procurement costs and can squeeze refining and marketing margins if retail fuel prices are not revised in line with rising input costs. Bharat Petroleum Corporation (BPCL) fell 1.3 percent, Hindustan Petroleum Corporation (HPCL) declined 1.5 percent, and Indian Oil Corporation (IOC) lost 1.2 percent.