JK Tyre, IndiGo, Asian Paints, HPCL Shares Surge Over 8% As Crude Oil Prices Slump

Shares of aviation, tyre, paint and oil marketing companies surged on Thursday as Brent crude slipped below $100 a barrel following an overnight decline of nearly 9%.

The fall in global oil prices, amid expectations of easing tensions in the US-Iran conflict, boosted sentiment towards companies dependent on petroleum-based fuels and raw materials.

JK Tyre jumped 8.5% to Rs 361 in early trade, while InterGlobe Aviation, IndiGo's parent company, gained 5.33% to Rs 5,413.

Asian Paints advanced 4.44% to Rs 2,525.70, while Apollo Tyres climbed 4.37% to Rs 420.

Hindustan Petroleum Corporation (HPCL) rose 5.17% to Rs 385.30, Bharat Petroleum Corporation (BPCL) gained 3.63% to Rs 315.75, and Indian Oil Corporation (IOC) advanced 3.10% to Rs 146.43.

Lower crude prices could reduce aviation turbine fuel expenses for airlines, potentially supporting profitability.

Tyre manufacturers may benefit from cheaper synthetic rubber, carbon black and other petroleum-linked inputs.

Paint companies could also experience reduced raw material costs, while oil marketing companies may see improved marketing margins.

Upstream producers faced selling pressure, with Oil India falling 3.07% to Rs 443.95 and Oil and Natural Gas Corporation (ONGC) declining 1.60% to Rs 231.24. Lower crude realisations could affect their earnings.

International oil prices extended losses for a fourth consecutive session as reported Democratic gains in the US midterm elections raised expectations of reduced military escalation against Iran.

Investors assessed whether political setbacks for President Donald Trump's Republican Party could encourage diplomatic efforts.

The broader Indian market also rebounded sharply. The Sensex climbed over 1500 points, or 2%, to 78,830.