Shares of Oil marketing companies (OMCs) extended their gains for the fourth consecutive session on Thursday after crude oil prices plunged to six-month lows in the international markets, which boosted investor sentiments.
Traders said the OMC stocks gained with crude oil prices hovering below $70 per barrel after OPEC-plus decision to increase output from April, a move which is expected to favour Indian refiners with added marketing margins on retail fuel.
The scrip of Hindustan Petroleum Corporation climbed 4.85 per cent to Rs 342.30 apiece, Indian Oil jumped 3.68 per cent to Rs 126.75 and Bharat Petroleum Corporation advanced 3.24 per cent to Rs 264.20 per piece on the BSE.
Additionally, shares of aviation companies also rose, with SpiceJet increasing 3.90 per cent to Rs 50.35 and Interglobe Aviation soaring 1.74 per cent to Rs 4,776.95 per piece.
Stocks of paint industry, a significant consumer of oil, also saw a buying rush.
Shares of Berger Paints climbed 3.05 per cent to Rs 498.95, Asian Paints rose 2.84 per cent to Rs 2,226.65, Indigo Paints advanced 3.15 per cent to Rs 1,051.65, and Kansai Nerolac went up 1.73 per cent to Rs 232.70 on the exchange.
Tyre manufacturers that also use significant portion of oil as a raw material witnessed a robust upward movement.
Apollo Tyres' shares appreciated 4.38 per cent to Rs 407, CEAT climbed 3.88 per cent to Rs 2,654.60, Balkrishna Industries increased 2.31 per cent to Rs 2,550.90, MRF rose 1.91 per cent to Rs 1,07,862 and JK Tyre Industries went up 1.61 per cent to Rs 273.25 apiece on the BSE.
The market is trading in the positive zone with the 30-shae BSE Sensex benchmark rising 84.99 points or 0.12 per cent to 73,815.22 in the late morning trade.
"Crude oil prices extended fall and slipped to 6-month lows in the international markets, as the tariff war intensified with both China and Canada retaliating by imposing tariffs on US goods," Rahul Kalantri, VP Commodities at Mehta Equities Ltd, said.
Kalantri further said, escalation on the trade war front has increased fears of global demand worries, adding pressure to oil prices.
Crude oil prices fell after OPEC+ said it would increase output from April.
However, weakness in the dollar index and upbeat Chinese manufacturing PMI data could support oil prices at lower levels.
"Chinese manufacturing PMI for February month was better than expected and the dollar index also slipped to 5-month lows, which could support oil prices at lower levels," he added.
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