Not only oil marketing and aviation companies' shares but also tyre and paint stocks gained strength in morning on Wednesday after steep fall in crude oil prices.
Fuel retailers BPCL, HPCL and IOC climbed 3-4 percent while airline companies SpiceJet, InterGlobe Aviation and Jet Airways gained 3-6 percent.
Paint makers Asian Paints, Berger Paints, Kansai Nerolac and Shalimar Paints were up 1-4 percent while tyre manufacturers Apollo Tyres, Ceat and JK Tyre rose over 1.6 percent each.
Crude oil is the raw material for oil marketing companies, so any volatility in international prices directly impacts their earnings.
Even for paint, aviation and tyre companies, oil forms major part of their operational expenses.
Crude oil prices tumbled more than 6 percent on Tuesday in heavy trading volume, with US crude diving to its lowest level in more than a year, caught in a broader Wall Street sell-off fed by mounting concerns about a slowdown in global economic growth.
US West Texas Intermediate (WTI) crude futures ended the session down $3.77, or 6.6 percent, at $53.43 per barrel. The contract fell as much as 7.7 percent during the session to touch $52.77 a barrel, the lowest since October 2017.
Brent crude futures, the international benchmark for oil prices, fell $4.26, or 6.4 percent, to settle at $62.53 a barrel. The international benchmark fell as much as 7.6 percent to $61.71 during the session, the lowest since December 2017.
Oil's slide has been largely unimpeded since early October when WTI prices were near four-year peaks. Since then, WTI has fallen more than 30 percent. (Source: Reuters)
However, oil prices clawed back on Wednesday after seeing sharp fall in previous session. Brent crude futures rose 1.4 percent to $63.41 a barrel and WTI crude climbed 1.42 percent to $54.19 a barrel, at the time of writing this article.
Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
