The shares of companies in the crude oil business fell sharply after the crude oil crashed in the international markets on Monday. Reliance Industries, the operator of world's largest crude oil refinery at Jamnagar and KG-D6 basin in Krishna Godavari basin, dipped by 13.65%. This is the biggest single day fall Reliance has experiences in at least 10 years.
The stocks of Reliance Industries fell to Rs 1,094.95 per share. At 1.34 pm, it was trading at Rs 1,100, lower by Rs 170.05 or 13.39 per cent from its previous close. The stock fell most since October 2008.
Moreover, the state-run ONGC also met with a similar fate after the stock prices slumped by 13% post the oil price crash in the global market.
The mayhem in domestic stock markets deepened with the BSE Sensex falling over 2,400 points and the Nifty50 trading below 10,400 points.
The plunge in the domestic indices was in line with the global markets on persistent fears of economic impact of the coronavirus epidemic.
The benchmark index of BSE Sensex was trading at 35,232.67 points, lower by 2,343.95 points or 6.24 per cent from the previous close of 37,576.62 points.
It had opened at the intra-day high of 36,950.20 and has so far touched a low of 35,109.18.
The Nifty50 on the National Stock Exchange was trading at 10,314.25 points, lower by 675.20 points or 6.14 per cent from the previous close.
It was a sell-off across sectors, led by financial, metal, energy and IT stocks - weighed on the markets.
Further, crude oil prices also slumped around 30 per cent on Monday as Organization of Petroleum Exporting Countries (OEPC) failed to agree on an output cut deal, eventually causing Saudi Arabia to cut its prices as it is likely to increase its production. Saudi Arabia's stance has already raised concerns of an all-out price war.
Brent crude futures are currently trading around $34 per barrel.
On Saturday, Saudi Arabia announced massive discounts to its official selling prices for April, and the nation is reportedly preparing to increase its production above the 10 million barrel per day mark, according to reports.
As per analysts, the oil market witnessed the worst price fall on Monday since the 1991 Gulf War.