Oil prices have been on the rise, and this is having a ripple effect on the stock market. With Brent crude reaching $60 per barrel and US West Texas Intermediate crude up 0.68 percent to $56.32 per barrel, crude-sensitive stocks are feeling the heat. But what's behind this surge, and which stocks are being impacted the most?
The recent blockade of Venezuelan oil tankers and the possibility of more sanctions on Russia's energy sector have led to supply concerns, causing oil prices to soar. The United States is preparing a fresh round of sanctions for Russia’s energy sector if President Vladimir Putin rejects the peace deal with Ukraine. This move could further disrupt oil supplies and drive prices up.
The shares of oil marketing companies have been hit hard, with Indian Oil Corporation (IOC) shares falling nearly 4 percent to close at Rs 161.73 apiece. Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) shares also closed in the red with marginal losses. Other companies that rely on crude oil as a raw material, such as paint companies, are also feeling the impact. IndiGo Paints and Asian Paints shares fell more than 1.5 percent and 1 percent, respectively.
Tyre stocks have also been affected by the rising oil prices. JK Tyre & Industries and Apollo Tyres shares fell around 1 percent each. The increase in oil prices is expected to affect the production costs of these companies, leading to a decline in their stock prices.
Remember, this is a developing story, and the impact of rising oil prices on the stock market can be unpredictable. It's essential to do your own research and consider multiple sources before making any investment decisions. As the situation continues to unfold, it's crucial to stay informed and adapt to the changing market conditions.
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