Crude Oil Prices Surge, Triggering 8% Drop in Airline, Tyre, and Paint Stocks Shares of airline, tyre, and paint companies fell by up to 8% on Monday as global crude oil prices surged past $110 per barrel, driven by escalating geopolitical tensions in West Asia. The sharp rise in oil prices triggered a broad sell-off in sectors heavily reliant on petroleum-based inputs. Among airlines, InterGlobe Aviation, which operates IndiGo, dropped 6.6%, while SpiceJet fell 5%. At 10:24 am, InterGlobe Aviation was trading at ₹4,114 per share, and SpiceJet was at ₹13.29. The sell-off extended to broader markets, with the Sensex and Nifty indices declining nearly 2,000 points and 666 points, respectively, marking a 2.7% drop. Paint companies also faced pressure, with Asian Paints losing 5%, Berger Paints falling 4.3%, and Indigo Paints slipping 5.6%. Tyre manufacturers recorded similar losses, including JK Tyre & Industries dropping 8.2%, Apollo Tyres falling 4.9%, Tolins Tyres declining 4.5%, and MRF losing 3%. The decline in these stocks followed a significant surge in global crude oil prices, which are a critical input cost for airlines, tyre makers, and paint producers. Analysts noted that airlines may attempt to offset rising fuel expenses by increasing fares. Brent crude reached its highest level since 2022, rising 28.9% to $119.5 per barrel, while West Texas Intermediate (WTI) climbed 24.7% to $113.4 per barrel. The recent spike in oil prices has been fueled by escalating tensions in the Middle East, particularly after the US and Israel launched attacks on Iran on March 1. This has raised fears of supply disruptions and higher inflation, unsettling global financial markets. Last week alone, US crude prices jumped 35%, and Brent crude rose 28%.#asian_paints #indigo_paints #interglobe_aviation #spicejet #berger_paints
