Paint, OMC stocks hold firm despite Brent nearing $77 on Day 6 of Middle-East conflict

Crude at $76.8 as conflict escalates, but oil-linked stocks shrug off pressure

Crude-sensitive stocks were in focus on June 18 after Brent crude prices surged nearly 5 percent to $76.8 per barrel — the highest since February 11, 2025. The sharp uptick comes as the military conflict between Iran and Israel entered its sixth day with no signs of easing.

While a continued rise in crude prices typically weighs on sectors like refining, aviation, paints, fertilisers, and petrochemicals, stocks across these industries held steady in early trade. Oil marketing companies such as Bharat Petroleum Corporation (BPCL), Hindustan Petroleum Corporation (HPCL), and Indian Oil Corporation (IOC) were all trading in the green.

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On the other hand, shares of upstream oil producers benefited from the spike in crude. Oil and Natural Gas Corporation (ONGC) and Oil India gained up to 1 percent in early trade, as higher oil prices often translate into better realisations for such companies.

Paint stocks, which are usually sensitive to input costs driven by crude, also stayed resilient. Shares of Asian Paints and Berger Paints edged up by 0.5 percent.

Market participants are closely monitoring geopolitical developments. On social media, Iran’s Supreme Leader Ayatollah Ali Khamenei declared, “The battle begins,” as Israel reported new strikes on Tehran.

Simultaneously, former US President Donald Trump met with his national security team and reportedly considered military action against Iranian nuclear sites. Explosions were also reported in Tel Aviv, as Israel warned citizens about incoming Iranian missiles.

While the full economic impact remains uncertain, analysts cautioned that a sustained surge in oil prices could eventually hurt margins for sectors dependent on crude, unless offset by pricing power or policy support.

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