Crude-sensitive stocks came under pressure on Tuesday as Brent oil prices surged towards the $100-a-barrel mark amid escalating tensions in the Middle East, raising concerns over higher input costs and inflationary pressures for several Indian companies. Oil marketing companies (OMCs), tyre makers and paint stocks were among those trading lower, while upstream producers Oil India and ONGC gained as rising crude prices improved the outlook for oil realisations.
Bharat Petroleum Corporation Ltd (BPCL) shares were down 2.88 percent at Rs 303.90 in afternoon trade, while Hindustan Petroleum Corporation Ltd (HPCL) fell 2.42 percent to Rs 348.25. Indian Oil Corporation (IOC) declined 0.92 percent to Rs 133.90.
The weakness in OMC stocks came as Brent crude futures jumped more than 2 percent to around $99 a barrel, having touched $99.22 earlier in the session, their highest level since July 24. US West Texas Intermediate (WTI) crude climbed more than 3 percent to around $94.4 a barrel.
Oil prices surged after Iran-backed Houthis attacked Saudi energy facilities, forcing operations at some facilities to be halted. Meanwhile, Iran threatened the US with "economic warfare", adding to concerns over further escalation and disruption to energy supplies and shipping in the Middle East.
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