OMC stocks slump up to 7%

Shares of oil marketing companies ended sharply lower on Thursday following rocketing crude oil prices due to the escalating tensions in West Asia. According to market analysts, oil marketing companies came under pressure as higher crude prices threaten to squeeze their refining and marketing margins.

Shares of Hindustan Petroleum Corporation Ltd slumped 7.01 per cent to settle at Rs 324.80 on the BSE. During the day, it plunged 7.87 per cent to hit the 52-week low of Rs 321.80.

The stock of Bharat Petroleum Corporation Ltd dropped 5.83 per cent to Rs 286, and Indian Oil Corporation declined 3.91 per cent to Rs 142.70. Brent crude, the global oil benchmark, surged 6.56 per cent to USD 114.4 per barrel. Stock markets also took a heavy beating after a three-day rally and were trading with deep cuts.

The sell-off was largely driven by a fresh escalation in geopolitical tensions in the Middle East, where renewed strikes between Israel and Iran targeting critical oil and LNG infrastructure have reignited concerns over global energy supply disruptions, an expert said.

Paint manufacturers also ended lower. Kansai Nerolac Paints lost 3.63 per cent, Asian Paints declined 3.36 per cent, Indigo Paints fell by 2.84 per cent and Berger Paints dipped 1.30 per cent on the BSE.