Athira Sethu
Kochi, 27 Oct 2026
Oil Sensitive Stocks May Continue to Get Attention in the Stock Market Since Crude Oil Prices Have Fallen After Reaching Their Four-Month High.
Crude Oil Prices Jumped Over 63% In Four Months. Crude oil price has surged to above $115 from $70 per barrel in four months due to the possibility of oil supply shortages due to conflicts in the Middle East.
Even when oil supply levels had normalized in September, new attacks brought new worries about possible impacts on oil production and supply. Houthis carried out new attacks on important parts of Saudi Arabia’s energy sector while Iran continued its attacks on oil tankers passing through the Strait of Hormuz.
Which Stocks are Affected?
Oil Sensitive Stocks refer to stocks of companies where the profit margin or expenses depend on changes in the price of crude oil.
1. Paint Companies
Asian Paints, Berger Paints and Indigo Paints stocks dropped by as much as 2% during Monday’s morning session. The paint companies rely on crude oil based raw material for making paints. An increase in the price of crude oil would mean an increase in the cost of production which will affect profits.
2. Tyre Companies
JK Tyres, Apollo Tyres, MRF and Balkrishna Industries stocks fell by as much as 3%. Similarly, the tyre companies need materials based on crude oil. An increase in oil prices could raise the cost of manufacturing and pressurize profits.
3. Oil Marketing Companies
Bharat Petroleum, Hindustan Petroleum and Indian Oil began the day in the positive zone, gaining up to 2.4%. This is because these companies purchase crude oil and sell petrol, diesel and other petroleum based products.
What Is the Performance of These Stocks?
After the start of the conflict in March, there has been a lot of downward pressure on oil-sensitive stocks compared to the performance of the stock markets.
Stock prices of Bharat Petroleum, Hindustan Petroleum and Indian Oil declined by about 30%.
Performance for paint companies has been mixed as well, with Asian Paints, Berger Paints, Indigo Paints and Kansai Nerolac recording gains ranging from -4% to 17%.
Tyre companies have not had it easy either with JK Tyres dropping by about 38%, Apollo Tyres, MRF and Balkrishna Industries declining by about 17%.
The biggest factor causing the poor performance of these stocks is the volatility of the price of crude oil. Even though the price of oil may decline for a while, there are still worries of further supply disruption.
If the price of crude oil continues to fall, some oil-sensitive stocks may benefit from reduced cost of production. But with the conflict continuing, the price will eventually increase.
So the price of crude oil, events in the Middle East and profitability of companies should be watched before investing.
