Asian Paints and Indigo Paints shares fell up to 2%, while IndiGo sank nearly 4%. MRF and Apollo Tyres fell around 1% and 4% respectively in the morning trading hours.
These stocks had earlier witnessed a sharp decline after crude oil prices crossed the key psychological level of $100 on Monday for the first time since Russia’s invasion of Ukraine in 2022. Oil prices had briefly cooled later, falling below the $90 mark on hopes of an early end to the conflict that erupted earlier this month after the US and Israel carried out missile strikes in Iran, reportedly killing its supreme leader, Ayatollah Khamenei, followed by massive retaliation from Tehran.
On Wednesday, Iran reportedly set ablaze two tankers in Iraqi waters and warned that the world should brace for oil prices to hit $200 a barrel. “Get ready for oil to be $200 a barrel, because the oil price depends on regional security, which you have destabilised,” a spokesperson for Iran’s military command said.
Iran also targeted fuel tanks at a facility in Bahrain’s Muharraq, the interior ministry said. Iraqi security officials added that Iranian explosive-laden boats struck two fuel oil tankers. Additionally, multiple drones hit fuel storage tanks at the Port of Salalah in Oman, triggering fires in at least two tanks.
The latest escalation has further dampened hopes of a near-term end to the conflict in the Middle East and the resumption of normal shipping through the Strait of Hormuz, a critical chokepoint for global oil trade.
As hostilities intensified, oil prices surged despite the International Energy Agency (IEA) agreeing to release 400 million barrels from members’ strategic reserves — its largest-ever stock release — to ease supply constraints.Brent crude futures jumped more than 9% to $100.3 per barrel, while WTI crude gained over 8% to $94.66 per barrel as of 8:45 am.
Over the past month, shares of Asian Paints and Berger Paints have fallen around 7%, while Indigo Paints has plunged 17%. MRF has declined 10% and Apollo Tyres 14%. IndiGo shares have dropped 13% during the period, while SpiceJet has fallen more than 26%.
Paint and tyre companies use crude oil as a key raw material, and rising oil prices can pressure their margins. For airlines, higher crude prices translate into increased aviation fuel costs.
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