Shares of Oil marketing companies (OMCs) extended their gains for the fourth consecutive session on Thursday (March 6, 2025) after crude oil prices plunged to six-month lows in the international markets, which boosted investor sentiments.
Traders said the OMC stocks gained with crude oil prices hovering below $70 per barrel after OPEC-plus decision to increase output from April, a move which is expected to favour Indian refiners with added marketing margins on retail fuel.
The scrip of Hindustan Petroleum Corporation climbed 4.85% to ₹342.30 apiece, Indian Oil jumped 3.68% to ₹126.75 and Bharat Petroleum Corporation advanced 3.24% to ₹264.20 per piece on the BSE.
Additionally, shares of aviation companies also rose, with SpiceJet increasing 3.90% to ₹50.35 and Interglobe Aviation soaring 1.74% to ₹4,776.95 per piece.
Stocks of paint industry, a significant consumer of oil, also saw a buying rush.
Shares of Berger Paints climbed 3.05% to ₹498.95, Asian Paints rose 2.84% to ₹2,226.65, Indigo Paints advanced 3.15% to ₹1,051.65, and Kansai Nerolac went up 1.73% to ₹232.70 on the exchange.
Tyre manufacturers that also use significant portion of oil as a raw material witnessed a robust upward movement.
Apollo Tyres’ shares appreciated 4.38% to ₹407, CEAT climbed 3.88% to ₹2,654.60, Balkrishna Industries increased 2.31% to ₹2,550.90, MRF rose 1.91% to ₹1,07,862 and JK Tyre Industries went up 1.61% to ₹273.25 apiece on the BSE.
The market is trading in the positive zone with the 30-shae BSE Sensex benchmark rising 84.99 points or 0.12% to 73,815.22 in the late morning trade.
“Crude oil prices extended fall and slipped to 6-month lows in the international markets, as the tariff war intensified with both China and Canada retaliating by imposing tariffs on US goods,” Rahul Kalantri, VP Commodities at Mehta Equities Ltd, said.
Mr. Kalantri further said, escalation on the trade war front has increased fears of global demand worries, adding pressure to oil prices.
Crude oil prices fell after OPEC+ said it would increase output from April. However, weakness in the dollar index and upbeat Chinese manufacturing PMI data could support oil prices at lower levels.
“Chinese manufacturing PMI for February month was better than expected and the dollar index also slipped to 5-month lows, which could support oil prices at lower levels,” he added.
Published – March 06, 2025 12:46 pm IST
