Brent crude dropped below $94 per barrel while WTI slid under $87 following Republican losses in both the U.S. Senate and the House of Representatives. U.S. Vice President JD Vance tied the election defeat to voter discontent over high energy prices, elevated living costs, and the U.S.-Iran war. Indian airline operators, state-run oil marketing firms, paint producers, and tyre makers subsequently logged substantial market gains on expectations of lower input costs.
Key points
A steep downturn in global oil prices significantly reduced input cost burdens for Indian…: A steep downturn in global oil prices significantly reduced input cost burdens for Indian manufacturing and transport companies.
Midterm election results in the United States triggered major political and economic shif…: Midterm election results in the United States triggered major political and economic shifts influencing international crude markets.
Heavy petroleum consumers across aviation, paint, and tyre industries experienced sharp s…: Heavy petroleum consumers across aviation, paint, and tyre industries experienced sharp single-day share price appreciation.
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Brent crude futures slipped below the $95-per-barrel mark to trade under $94, while WTI crude futures fell below $87 on Thursday morning.
The sharp decline in crude prices lifted sentiment towards companies that use oil as a key raw material, as well as airlines that have been grappling with elevated aviation fuel costs. Investors also cheered the prospect of lower input costs for paint and tyre makers, while easing crude prices could offer relief to oil marketing companies.
Crude-sensitive stocks rally
Among the airlines, IndiGo shares surged 7% to trade at Rs 5,489 apiece, while SpiceJet shares jumped around 5%. Paint-maker Asian Paints saw its shares rally nearly 7%, while those of peers Indigo Paints and Berger Paints jumped up to 5%.MRF shares rallied more than 4%, with each share gaining Rs 4,995 to trade at Rs 1.23 lakh apiece. Apollo Tyres and Balkrishna Industries shares jumped more than 8%. Oil marketing companies, including Hindustan Petroleum Corporation (HPCL), Bharat Petroleum Corporation (BPCL) and Indian Oil Corporation (IOC) saw their share prices jump up to 7%.
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