Crude-Sensitive Stocks Fall As Brent Holds Above $100; Markets Trade Lower

Shares of crude-sensitive companies declined on March 27 as Brent crude prices stayed above $100 per barrel, impacting sectors dependent on fuel and raw material costs, according to Reuters and market data.

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

InterGlobe Aviation shares fell 3.5% to ₹4,144.5 on the National Stock Exchange, while SpiceJet declined 4.5%. Among paint companies, Asian Paints dropped over 1%, while Berger Paints India and Akzo Nobel India declined between 1% and 2%.

Tyre, Aviation And Paint Stocks Under Pressure

Tyre stocks also witnessed declines. JK Tyre & Industries lost 2%, and Apollo Tyres lost close to 2% as investors remained apprehensive over rising input and fuel prices. Eternal shares lost over 2% as they reacted to rising fuel prices impacting delivery operations.

Brent crude, the global oil benchmark, was trading at $106.8 per barrel, according to Reuters. Elevated crude prices increase input costs for sectors such as aviation, paints, tyres and logistics, which rely heavily on fuel and petroleum-linked raw materials.

Broader Market Declines

Benchmark indices also traded lower during the session. The Sensex declined 1,224.07 points or 1.63% to 74,049.38, while the Nifty 50 fell 360.80 points or 1.55% to 22,945.65. The Nifty slipped below the 22,950 level during the day.

Broader market weakness followed uncertainty around geopolitical developments linked to the U.S.-Iran conflict, which has influenced crude oil prices.

Rising Volatility

Market volatility also picked up during the day, with India VIX rising 8%. This is a measure of market uncertainty.

Oil prices have been trading above $100 per barrel due to tensions in West Asia. Earlier in the month, oil prices rose even higher and then came off. However, they are trading at elevated levels.

India is a large importer of crude oil. Thus, Indian markets are also impacted by crude oil prices. Oil prices trading at elevated levels are impacting stock-specific movements.