Shares of companies sensitive to crude price moves surged in a relief rally on Friday as oil prices retreated sharply, easing concerns over elevated input costs hurting profitability
After surging close to 20% since the onset of the US-Iran conflict, Brent crude fell more than 5% to as low as $85.80 a barrel on Friday amid growing optimism around a US-Iran peace deal. The pullback lifted shares of oil marketing companies (OMCs), tyre makers, airlines and paint firms, key beneficiaries of lower crude, while dragging down upstream oil producers.
A decline in crude is typically positive for India, one of the world's largest importers of oil. Brent futures slipped below $90 a barrel for the first time in three months. "Between $80-90, oil prices are likely to be in a sweet spot for most sectors," said Sunny Agrawal, head of fundamental research, SBI Securities.
