Aviation, OMC Stocks Rally After Crude Oil Prices Slump As US-Iran Tensions Ease

Crude oil–linked companies saw strong buying momentum in early trade on Friday. IndiGo shares climbed almost 3%, HPCL and BPCL rose over 4%, and tyre manufacturers advanced up to 3%, reflecting optimism from a sharp fall in global crude prices.

The rally lifted broader markets, pushing the Sensex up nearly 1,000 points and helping the Nifty surpass the 23,400 level.

Sensex surged over 1,000 points (1.4%) while the Nifty jumped over 1.2%. Market breadth was strongly positive, with 2,051 stocks advancing versus just 307 declining.

Airlines, oil marketing companies, tyre producers, and paint makers were key beneficiaries of lower crude costs, which are expected to reduce fuel and raw material expenses.

InterGlobe Aviation, IndiGo’s parent company, led the gains, rising almost 4% to Rs 4,677, as aviation turbine fuel—airlines’ largest cost component—becomes cheaper.

State-run fuel firms also attracted buying. HPCL climbed 4.3%, BPCL gained 4.5%, and IOC added about 3%. Declining crude prices generally improve marketing margins and ease pressure on fuel pricing.

Tyre companies performed strongly as well. Apollo Tyres rose 3.4%, JK Tyre 4.2%, and CEAT 3%, benefiting from lower natural and synthetic rubber costs tied to crude derivatives.

Paint stocks also traded higher, with Asian Paints up 1.7% and Berger Paints nearly 1.5%, as cheaper crude-linked raw materials enhance margins.

The rally followed Brent crude dipping below $90 per barrel. US President Donald Trump’s remarks about a possible Iran peace deal this weekend eased geopolitical concerns, suggesting stable energy supplies and lowering the risk premium in oil prices.

However, upstream oil producers lagged. Oil India fell 2.5% and ONGC dropped 2% amid concerns that lower crude prices could impact their realisations.