Brent above $76 hits oil-sensitive stocks; BPCL, HPCL, IndiGo fall up to 4%

New Delhi: Shares of crude oil-sensitive companies came under sharp selling pressure on Wednesday after Brent crude climbed above the $76-a-barrel mark, raising concerns over higher fuel and raw material costs. Bharat Petroleum Corporation Ltd (BPCL), Hindustan Petroleum Corporation Ltd (HPCL), InterGlobe Aviation (IndiGo) and Asian Paints declined by up to 4% in early trade as investors factored in the impact of rising crude prices on corporate earnings. The broader weakness followed a renewed surge in oil prices after the United States launched strikes on Iran and reinstated sanctions on Iranian crude exports, reviving fears of supply disruptions in the Middle East. Oil marketing companies (OMCs) such as BPCL, HPCL and Indian Oil Corporation are particularly vulnerable to sustained increases in crude prices as higher input costs can squeeze marketing margins, especially if retail fuel prices are not raised in tandem. The aviation sector also remained under pressure. Fuel accounts for a significant share of an airline's operating expenses, and any increase in crude prices typically feeds into higher aviation turbine fuel (ATF) costs, weighing on profitability. IndiGo, India's largest airline by market share, was among the worst-hit stocks. Paint manufacturers also slipped as crude oil derivatives such as solvents, resins and other petrochemical products are key raw materials for the industry. Higher crude prices generally translate into increased input costs, putting pressure on operating margins for companies including Asian Paints. The latest decline marks a sharp reversal from last week's rally in the same set of stocks, when Brent crude had slipped below $75, boosting sentiment around OMCs, airlines and paint companies on expectations of lower input costs. Market participants are now closely tracking developments in the Middle East, as any prolonged disruption to global oil supplies or escalation in geopolitical tensions could keep crude prices elevated and continue to weigh on India's oil-dependent sectors.