Shares of crude-sensitive companies such as Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation Ltd (IOCL), Hindustan Petroleum Corporation Ltd (HPCL), InterGlobe Aviation and Eternal ended lower on May 18 as rising global crude oil prices and escalating tensions in West Asia weighed on investor sentiment.
The selloff came after Brent crude oil prices crossed the $111-per-barrel mark following reports of a drone strike on the Barakah nuclear power plant in the United Arab Emirates (UAE), raising concerns over possible supply disruptions in the region.
Oil Marketing Companies Under Pressure
Oil marketing companies (OMCs) were among the worst hit during the session as investors worried that elevated crude prices could squeeze refining and marketing margins.
Shares of oil marketing companies BPCL, IOCL and HPCL, which refine crude oil into fuels and sell them to consumers, fell 1-2 per cent.
The stocks remained under pressure despite the recent Rs 3 per litre hike in petrol and diesel prices, as investors fear companies may not be able to fully pass on higher crude oil costs to consumers if prices remain high for long.
