A slump in global crude oil prices overnight pushed OMCs (oil marketing companies) and airlines shares higher on Thursday. Brent crude prices posted their biggest one-day drop overnight on Wednesday in almost two years. Following the report, shares of Bharat Petroleum Corporation (BPCL) surged almost 5% to a high of Rs 385.80 on the BSE, while Indian Oil Corporation (IOC) shares rose by 5.83% to a high of Rs 164.20 per share.
Reliance Industries shares rose 2.83% to a high of Rs 1,065.80, while Hindustan Petroleum (HPCL) rose 6.20% to Rs 281.50 per share on the BSE during morning deals on Thursday. The S&P BSE oil and gas index was up almost 2%.
Among the airline stocks, InterGlobe Aviation — which owns low-cost carrier IndiGo — rose 4.39% to a high of Rs 1,121.30 on the BSE. Shares of Jet Airways climbed 6.01% to Rs 358.90 while SpiceJet stocks soared 6.57% to Rs 117.60 on the BSE. Meanwhile, the benchmark Sensex rose 307 points or 0.85% to 36573.43 points in early trade on Thursday.
Brent crude prices saw the biggest one-day percentage drop since February 2016, tanking 6.9% overnight on Wednesday, the biggest one-day percentage drop since February 2016. Trade tensions threatened to hurt oil demand, Reuters reported. Also, news that Libya would reopen its ports raised expectations of growing supply hurt sentiments.
Globally, escalating US-China trade war concerns made markets jittery on Wednesday, with U.S. stocks breaking a four-session winning streak and Asian shares trading weak. However, Brent crude futures recouped losses on Thursday, rising 1.35% to $74.38 a barrel.