Oil Prices Drop: OMCs & Paint Stocks Rally

New Delhi, May 6 (PTI) Shares of oil marketing companies and paint manufacturers climbed on Wednesday amid a steep decline in oil prices, which fell below the USD 100 per barrel-mark.

The stock of Hindustan Petroleum Corporation Ltd jumped 6.89 per cent, Bharat Petroleum Corporation Ltd climbed 5.12 per cent, and Indian Oil Corporation went up 4.22 per cent on the BSE.

Among paint manufacturers, shares of Indigo Paints climbed 3.77 per cent, Asian Paints rallied 3.56 per cent, Shalimar Paints advanced 2.33 per cent and Berger Paints went up 1.67 per cent.


Brent crude, the global oil benchmark, tanked 10.50 per cent to USD 98 per barrel.

Helped by fag-end heavy buying, the 30-share BSE Sensex jumped 940.73 points, or 1.22 per cent, to settle at 77,958.52. The 50-share NSE Nifty rallied 298.15 points, or 1.24 per cent, to end at 24,330.95.

"The trigger was largely global -- renewed optimism around a potential US-Iran peace deal led to a sharp decline in crude oil prices, offering immediate relief to an import-heavy economy like India," Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.

Oil-sensitive sectors outperformed, with IndiGo, BPCL, Asian Paints, and Pidilite gaining on the back of falling crude, which directly improved input cost dynamics and margins, he added.