Israel-Iran War Drags Markets, Crude Sensitive Sectors Take A Hit

The stock of Bharat Petroleum Corporation Ltd tanked 6.11 per cent, Hindustan Petroleum Corporation Ltd tumbled 5.34 per cent and Indian Oil Corporation dropped 3.91 per cent on the BSE.

Global oil benchmark Brent crude jumped 8.56 per cent to $75.30 a barrel.

Source : ABPLIVE AI

Shares of crude oil sensitive sectors -- oil marketing companies, aviation, paints, adhesives and tyres -- declined on Friday following a sharp spike in global oil benchmark Brent crude prices amid escalating tensions in the Middle East.

The stock of Bharat Petroleum Corporation Ltd tanked 6.11 per cent, Hindustan Petroleum Corporation Ltd tumbled 5.34 per cent and Indian Oil Corporation dropped 3.91 per cent on the BSE.

SpiceJet fell by 5.64 per cent and InterGlobe Aviation dropped 5.62 per cent.

Global oil benchmark Brent crude jumped 8.56 per cent to USD 75.30 a barrel.

Among paints stocks, Berger Paints tanked 4.47 per cent, Indigo Paints went lower by 3.24 per cent and Asian Paints declined 1.94 per cent.

Shares of Apollo Tyres edged lower by 3.67 per cent and MRF dipped 0.65 per cent.

"The economic consequences of Israeli strike can be profound if the attack and counter attack by Iran lingers long. Brent crude prices have flared up by around 12 per cent to $78. The impact on market will depend on how long the conflict lingers. In the near-term the market will be in a risk-off mode. Sectors that uses oil derivatives as inputs like aviation, paints, adhesives and tyres will be hit hard. Oil producers like ONGC and Oil India will remain resilient," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.

Equity benchmark indices Sensex and Nifty tumbled on Friday morning trade in tandem with weak Asian markets amid a sharp spike in Brent crude oil prices after Israel attacked Iran's capital.

"Crude oil futures surged over 10 per cent to $76 per barrel, the highest in two months, as escalating tensions between Israel and Iran sparked fears of severe supply disruptions," Rahul Kalantri, VP Commodities, Mehta Equities Ltd, said. 

(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)