Oil Marketing Companies Under Pressure as Crude Prices Surge

Shares of oil marketing companies plummeted due to escalating West Asian tensions driving crude oil prices higher. Hindustan Petroleum, Bharat Petroleum, and Indian Oil saw significant declines. Brent crude's rise to USD 114.1 per barrel worsened the stock market's performance, with BSE Sensex and NSE Nifty experiencing substantial drops.

Shares of India's top oil marketing companies faced significant pressure on Thursday as escalating geopolitical tensions in West Asia sent crude oil prices soaring. Analysts attribute the plummeting stocks to fears of shrinking refining and marketing margins amid rising oil prices.

Hindustan Petroleum Corporation Ltd's stock nose-dived by 7.42%, reaching a 52-week low. Similarly, Bharat Petroleum and Indian Oil Corporation experienced sharp declines of 5.67% and 3.70% respectively, as Brent crude, the global benchmark, surged to USD 114.1 per barrel.

The overall stock market also took a hit, with the BSE Sensex tumbling by over 1,800 points and the NSE Nifty dropping by more than 580 points. Experts noted a strong risk-off sentiment among investors as they reacted cautiously to the rising oil prices and renewed geopolitical concerns.

(With inputs from agencies.)