The ongoing decline in Brent crude prices has positively impacted oil marketing companies (OMCs) and paint manufacturers while hurting sentiment for oil refiners.

Cheaper crude prices help OMCs and paint makers by cutting their input costs, which allows them to enjoy higher profit margins. OMCs can also make money from inventory gains by buying stock at lower prices. On top of that, cheaper fuel prices might boost consumer demand, which could lead to higher sales volumes and more revenue for these businesses.

Boosted by the decline in crude prices, shares of OMC companies like HPCL, BPCL, and IOCL rose 1 – 3.5% today, with HPCL leading the gains at 3.5%, reaching a record high of Rs 442.50 on NSE.

Paint stocks also saw gains, with Asian Paints, Indigo Paints, Shalimar Paints, and Berger Paints India rising 1.5 – 5%.

On the downside, the drop in crude prices negatively impacts oil drilling stocks like ONGC and Oil India, as it squeezes their profit margins. Refineries holding inventories bought at higher prices may face inventory losses due to the slower drop in refined product prices.

Shares of upstream companies, Oil India and ONGC, fell by over 1% and 2.5%, respectively. Brent crude prices hit a nine-month low, dropping to nearly $73 per barrel, driven by concerns over a demand slowdown in China due to the rise in electric vehicle adoption.

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