The shares of paint, tyre and oil marketing companies (OMC) dropped in trade on August 22 as oil prices rose. This comes as Russia-Ukraine war continues to escalate, with hopes of US-brokered peace talks seeming to fade.
Oil prices increased on Friday, with Brent Crude futures rising nearly 0.3 percent to stand at around $67.85 per barrel. WTI Crude futures meanwhile rose 0.33 percent to hover near the $64 per barrel-mark.
Paint and tyre companies, as well as the OMCs keep oil prices in focus as it is a key raw material in the sectors. Rising oil prices increases input costs of these companies, thereby impacting the stocks.
Asian Paints shares dropped more than 2 percent to trade at Rs 2,511 apiece, while Indigo Paints shares were down around 1.5 percent to stand at Rs 1,122 apiece. Berger Paints shares were trading nearly 1 percent lower at Rs 525 apiece.
MRF, which is one of India's most expensive stocks, saw its share price decline nearly 1 percent, while Apollo Tyres and JK Tyre shares were trading in the red with marginal losses. Balkrishna Industries shares were also down nearly 1 percent.
Bharat Petroleum (BPCL) shares dropped more than 1.2 percent, while Hindustan Petroleum (HPCL) and Indian Oil Corporation (IOC) shares were down nearly a percent each.
Russia launched one of its largest attacks on Ukraine, sending 574 drones and 40 missiles to the neighboring country, Ukrainian President Volodymyr Zelenskyy said. One person was killed and 22 were wounded in the overnight strikes, authorities said.
According to Zelenskyy, a missile strike on a US-owned electronics firm was a "telling" indicator of Russian intentions in US-led peace initiatives. "Now the signals from Russia are simply, to be honest, indecent. They are trying to back away from the need to hold meetings. They don't want to end the war. They carry on with massive strikes," he said in a video address.
This comes after US President Donald Trump said earlier this week that there was an agreement for a bilateral meeting between Zelenskyy and Russian President Vladimir Putin. He has however muted his stance on ceasefire now, saying Putin is not interest in ending the hostilities.
Vladimir Putin now demands that Ukraine gives up all of the eastern Donbas region, renounce ambitions to join NATO, remain neutral and keep Western troops out of the country, Reuters reported citing sources. The Russian President met Donald Trump in Alaska last week for the first Russia-US summit in more than four years and spent almost all of their three-hour closed meeting discussing what a compromise on Ukraine might look like, the report further said.
Notably, Trump has threatened to impose 50 percent tariff on Indian imports, citing the country’s import of Russia oil. Russian embassy officials recently said that the Putin-led country expects to continue supplying oil to India despite pressure from the United States, adding that Moscow hoped trilateral talks with India and China would soon take place.
(With inputs from Reuters)
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