IndiGo among top Nifty losers; Asian Paints, IOCL, Apollo Tyres slump as crude surge hits paints, tyre stocks

Nifty Top Losers: Crude-sensitive stocks fall

• Oil price surge and tensions hit crude-sensitive stocks.
• Paint, tyre, and oil marketing firms saw sharp declines.
• Sensex down 1,701 points; Nifty drops 525 points in early trade.

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Shares of crude-sensitive companies -- including paint makers, tyre manufacturers and oil marketing firms -- fell sharply in early trade on Wednesday as surging oil prices and escalating tensions in the Middle East triggered broad selling across energy-linked sectors.

At 09:29 am, the Sensex was down 1,701 points or 2.1 percent at 78,537.9, while the Nifty dropped 525.1 points to 24,340.5. Market breadth was decisively negative, with 2,684 shares declining against 551 advances on the NSE.

Paint companies were among the worst affected. Asian Paints fell 2.7 percent, Berger Paints dropped 2.3 percent, Kansai Nerolac declined 2.1 percent, and Akzo Nobel India slipped 1.4 percent as investors priced in the risk of higher input costs linked to crude derivatives such as solvents and resins.

Tyre makers also came under pressure. Apollo Tyres fell 2.3 percent, CEAT declined 2.1 percent, and JK Tyre dropped nearly 3 percent, reflecting concerns that higher oil prices could raise the cost of synthetic rubber and other petrochemical inputs.

• Also read | India faces current account, inflation risks as global brokerages assess impact of US-Israel-Iran conflict

Oil marketing companies (OMCs) were also weak, with Indian Oil Corp falling 3.5 percent, Bharat Petroleum down 3.8 percent, and Hindustan Petroleum slipping 3.2 percent. OMCs are typically vulnerable to crude spikes because higher procurement costs can squeeze marketing margins if fuel prices are not adjusted quickly.

The selling pressure extended to aviation stocks as well, with InterGlobe Aviation (IndiGo) declining 4.5 percent among the top losers on NSE Nifty 50, reflecting concerns over rising jet fuel costs. SpiceJet also fell about 5.8 percent in broader market trade.

Among benchmark heavyweights, Larsen & Toubro plunged over 6 percent, emerging as the top Nifty loser, while infrastructure-linked scrips such as Adani Ports and Adani Enterprises also declined more than 3 percent.

The sharp fall in crude-sensitive counters comes as oil prices surged amid the widening conflict involving the United States, Israel and Iran, raising fears of supply disruptions through the Strait of Hormuz -- a key shipping route for global energy trade.

Higher crude prices typically raise inflation concerns and increase input costs for sectors reliant on petroleum derivatives, prompting investors to cut exposure to companies with high energy-linked cost structures.

Sectorally, the weakness was visible across Nifty Auto, Nifty Infra, Nifty Metal and Nifty Oil & Gas indices, which were among the worst performers. In contrast, Nifty IT showed relative resilience, with stocks such as Infosys and HCLTech trading modestly higher.

With India VIX jumping nearly 20 percent to above 20, analysts said volatility is likely to remain elevated.

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