Crude Oil Prices Soar to Drag OMC Stocks; HPCL, IOCL Slide More Than 2%

Stocks of oil marketing companies (OMCs) were sold off on July 13 as crude oil prices jumped over 4%. The rise in global oil prices weighed on sentiment for fuel retailers, with HPCL share price and IOCL share price falling over 2% during morning trade.

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The Nifty Oil & Gas index also slipped, touching an intraday low of 11,085.80 before recovering part of its losses. At around 9:50 a.m., the sectoral index was down 0.35% at 11,138.40.

OMC Stocks Under Pressure

Among the major state-run fuel retailers, HPCL share price declined 2.46%, while IOCL share price dropped 2.45%. BPCL share price also traded 1.68% lower. The decline followed a sharp jump in crude oil price after fresh military strikes involving the U.S. and Iran intensified concerns over energy shipments through the Strait of Hormuz.

Other energy stocks also traded in the red. Petronet LNG, GAIL, BPCL, HPCL and IOCL fell more than 1%. Reliance Industries, Indraprastha Gas, Mahanagar Gas and Aegis Vopak Terminals also recorded modest losses during the session.

Crude Oil Price Remains Key Monitorable

According to VK Vijayakumar, Chief Investment Strategist at Geojit Investments, the evolving situation in West Asia has become an ongoing risk factor for markets, with crude oil price remaining the most important indicator for India.

He said investors have not reacted with the same level of panic witnessed earlier this year, adding that Brent crude trading below $90 per barrel is unlikely to significantly disrupt market sentiment. However, he noted that a sustained move above that level could trigger a broader correction in equities.

Some Energy Stocks Buck The Trend

While oil marketing companies remained under pressure, a few energy-related stocks traded higher. Chennai Petroleum Corporation, Aegis Logistics, Castrol India, Adani Total Gas, Oil India and Oil and Natural Gas Corporation gained up to 1.74% during intraday trade.

The benchmark Nifty 50 index was trading at 24,091.45, down 115.45 points or 0.48%, reflecting cautious sentiment across sectors.

Fresh Supply Concerns Lift Oil Prices

Brent crude oil price was last trading 4.09% higher at $79.12 per barrel, while U.S. West Texas Intermediate crude oil price rose 4.10% to $74.33 per barrel. The gains followed another round of U.S. strikes on Iranian targets and reports of retaliatory action by Iran’s Revolutionary Guards against U.S. military bases in Kuwait and Bahrain.

The Strait of Hormuz remains central to market attention because roughly one-fifth of global oil and liquefied natural gas shipments pass through the route under normal conditions. Continued uncertainty around the waterway is expected to keep crude oil price movements in focus, with Indian energy stocks likely to remain sensitive to further geopolitical developments.