Shares of Oil & Natural Gas Corporation (ONGC) and Oil India Limited climbed up to 3% in intraday trade on Monday following a sharp surge in global crude oil prices triggered by escalating geopolitical tensions between Israel and Iran. The price of Brent crude surged past $86 per barrel, raising fresh concerns over input cost pressures across industries.
Key Highlights:
- ONGC stock rose by 2.8%, while Oil India shares jumped 3.1% on the NSE.
- Crude oil prices spiked after renewed conflict flared up in the Middle East, pushing global benchmark prices higher.
- Analysts believe energy companies with upstream exposure are better positioned to benefit from rising crude, while sectors like refining, tyre manufacturing, and aviation may face margin pressure.
Impact on Refiners and Tyre Makers:
The rally in crude has had a negative impact on sectors dependent on oil derivatives:
- HPCL, BPCL, and Indian Oil saw mild declines as rising crude eats into refining margins.
- Tyre makers like MRF, Apollo Tyres, and CEAT also saw pressure, as synthetic rubber and carbon black — key inputs — become more expensive.
Broader Sectoral Impact:
- Energy index gained over 1% in Monday’s trade, supported by upstream oil producers.
- Auto and Aviation sectors faced mild selling pressure due to rising fuel costs.
Analyst View:
Experts suggest staying cautious on sectors that are sensitive to crude prices. However, upstream oil companies may continue to attract investor attention if the geopolitical turmoil persists.
Also Read: Tata Motors Shares Fall 5% After JLR Flags FY26 Margin Concerns.
