IndiGo, Asian Paints Lead Market Gains After Brent Crude Drops Below $93

Shares of oil-sensitive sectors such as paints, aviation, tyres and oil marketing companies advanced on Tuesday after crude oil prices retreated below $93 per barrel amid signs of easing tensions between Israel and Iran.

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Brent crude slipped below $93 per barrel after approaching $98 per barrel in the previous session, while U.S. crude traded near $90 per barrel. The decline in oil prices followed indications from both Israel and Iran that hostilities had paused, reducing concerns about disruptions to global oil supplies.

Paint And Aviation Stocks Gain

At around 12:25 pm, Asian Paints rose 1.3% to ₹2,695, while Berger Paints gained 1.7%. Lower crude prices are generally beneficial for paint manufacturers as petroleum-based derivatives account for a significant portion of their raw material costs.

In the aviation sector, InterGlobe Aviation, the parent company of IndiGo, climbed 3.8% to ₹4,524 and emerged among the top gainers on the Nifty 50 index. The stock also received support from positive brokerage commentary following the airline’s recent investor interaction.

Goldman Sachs, Jefferies and HSBC maintained their Buy ratings on IndiGo, supporting the carrier’s FY30 expansion strategy despite concerns over higher fuel costs and delays in aircraft deliveries.

Brokerages highlighted IndiGo’s plan to carry around 200 million passengers annually by FY30, operate a fleet of more than 550 aircraft and increase international operations to 40% of its total network capacity. Analysts noted that the airline’s market leadership, large aircraft order book and expanding international presence support its long-term growth plans.

Tyre Companies Trade Higher

Tyre manufacturers also traded in positive territory as softer crude oil prices improved sentiment toward companies that use petroleum-linked raw materials.

Apollo Tyres gained 0.8%, JK Tyre rose 1.3% and CEAT advanced 0.7% during the session.
Lower crude prices are generally viewed as favourable for tyre makers because petroleum derivatives form a key component of raw material expenses.

Oil Marketing Companies Advance

Shares of oil marketing companies also moved higher. Bharat Petroleum Corporation gained 1%, Hindustan Petroleum Corporation rose 2% and Indian Oil Corporation advanced 1.1%.

A decline in crude prices typically supports oil marketing companies by reducing concerns related to inventory losses and working capital pressures.

Crude Prices Ease On Ceasefire Hopes

The decline in oil prices came after Israel and Iran signalled a halt in hostilities. Israeli Prime Minister Benjamin Netanyahu said Israel was holding fire for the time being, while Iranian media conveyed a similar position.

The developments eased fears of a broader conflict in the Middle East and reduced concerns over potential disruptions to global energy supplies, leading to a pullback in crude prices from recent highs.

Broader Market Remains Positive

The broader equity market also traded higher on Tuesday. The Sensex was up 207 points, or 0.28%, at 73,732, while the Nifty gained 76 points, or 0.33%, to 23,199. On the NSE, advancing stocks outnumbered declining shares by more than two-to-one.

Market sentiment received support from the fall in crude oil prices, which boosted sectors where fuel and petroleum-based inputs account for a significant share of operating and raw material costs.