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Shares of oil marketing firms led by Bharat Petroleum Corporation Ltd (BPCL) on Monday cracked up to 7 per cent following massive spike in crude prices.
BPCL dropped 7.04 per cent, and Hindustan Petroleum Corporation Ltd tumbled 5.70 per cent on the BSE.
Shares of Indian Oil Corporation Limited also fell by 1.15 per cent.
“Any further escalation of geopolitical tensions in the middle-east region may add to the woes. Spike in crude prices, even if temporary, will be negative for downstream OMCs,” Kotak Securities said in a report.
Global crude oil price skyrocketed after drones attacked two Saudi Arabian plants on Saturday.
Oil prices surged the most on record on Monday, with Brent crude rising by as much as 19.5 per cent to USD 71.95 per barrel - the biggest gain in dollar terms since futures started trading in 1988.
Aviation stocks also faced selling, with SpiceJet falling 3.95 per cent, InterGlobe Aviation 2.86 per cent and Jet Airways 1.20.
The BSE benchmark Sensex on Monday slipped nearly 262 points due to panic sell-offs by investors who were caught off guard by a spike in the crude prices.
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