Shares of several oil-dependent companies came under pressure on Friday after global crude prices surged to their highest level in 17 weeks, approaching $110 per barrel.
Stocks including Reliance Industries, Hindustan Petroleum, Bharat Petroleum, InterGlobe Aviation (IndiGo) and Asian Paints declined following the rise in energy prices.
The Nifty Oil & Gas index fell 0.78% in early trade to 10,943.80 points, compared with its previous close of 11,029.90. Oil marketing companies such as HPCL, BPCL and Reliance Industries were among the major contributors to the decline.
Reliance Industries declined 1.72% while Hindustan Petroleum slipped almost 4%. The stock of IndiGo was also down 2.8%.
Crude price surge pressures downstream companies
The increase in crude prices has raised concerns over margins for companies that depend on petroleum products as inputs. Oil marketing companies, aviation firms, tyre manufacturers and paint companies are among the sectors most affected by higher energy costs.
OMCs purchase crude oil and process it into petrol, diesel and other petroleum products. Any increase in crude procurement costs can impact their profitability if retail fuel prices do not rise proportionately.
Airlines are also vulnerable as aviation turbine fuel (ATF) forms one of their largest operating expenses. Similarly, tyre and paint manufacturers use crude derivatives as raw materials, making their production costs sensitive to oil price movements.
Upstream firms benefit from higher oil prices
While downstream companies faced selling pressure, upstream producers such as ONGC and Oil India gained as they benefit from higher realisations on crude production.
Benchmark Brent crude touched $109.68 per barrel during Friday’s session, its highest level since May 15, 2026, according to Investing.com data.
The rally in oil prices has been driven by heightened geopolitical risks following renewed tensions between the US and Iran, concerns over possible supply disruptions and uncertainty in the West Asian region.
