IndiGo, SpiceJet shares hit 52-week lows; auto, paint and tyre stocks tumble up to 5% as crude crosses $115

Indian equity markets witnessed broad-based selling on Monday morning, with crude-sensitive stocks - particularly aviation, auto, paint and tyre companies - witnessing heavy pressure after global oil prices surged past $115 per barrel amid escalating geopolitical tensions in the Middle East.

The spike in Brent crude, the global oil benchmark, was triggered by intensifying military conflict involving the United States, Israel and Iran, which has disrupted supply routes through the Strait of Hormuz, one of the world’s most critical oil shipping corridors. Nearly 20% of global oil supply passes through this narrow passage, making energy markets highly sensitive to any escalation in the region.

Brent crude briefly surged above $115 per barrel during Asian trading hours today, raising fresh fears about rising fuel costs and inflation, particularly for large oil-importing countries like India. Last week, oil prices surged about 28% to settle at $92.69 per barrel on Friday, marking the sharpest weekly jump since the Covid-19 pandemic and reigniting fears of a fresh wave of global inflation.

Triggered by the sharp spike in crude prices, the benchmark BSE Sensex plunged more than 2,200 points to around 76,892, while the Nifty 50 dropped nearly 2.8% to the 23,960 level in early trade. The sell-off wiped out nearly ₹13 lakh crore of investor wealth within hours.

Aviation stocks hit hard

Shares of airline operator InterGlobe Aviation, which runs IndiGo , plunged more than 7%, emerging as the biggest loser on the benchmark indices. The aviation heavyweight fell to an intraday low close to its 52-week low of ₹4,035 on the BSE. The surge in oil has reignited concerns over rising fuel costs and profitability for airlines, where aviation turbine fuel (ATF) accounts for a significant portion of operating expenses.

Other aviation stock also faced heavy selling, with shares of SpiceJet dropping as much as 8% in early trade to hit its 52-week low of ₹12.85 on the BSE. A sustained rally in crude would push up ATF prices, squeeze margins and potentially force airlines to raise fares—a move that could dampen passenger demand if prolonged.

Paint, tyre stocks decline on input cost worries

Paint companies, which rely heavily on crude-based inputs, also saw sharp declines. Shares of Asian Paints slipped nearly 5%, while Berger Paints India, Kansai Nerolac Paints and Akzo Nobel India fell between 3% and 4% amid concerns about rising raw material costs.

Tyre makers were another casualty of the oil price spike. Shares of JK Tyre & Industries dropped about 6.5%, while Apollo Tyres declined nearly 4% as investors anticipated higher input costs.

Auto emerges as top laggard

Auto stocks were also under pressure. The Nifty Auto index fell nearly 3.9%, making it one of the worst-performing sectoral indices of the day. Shares of Maruti Suzuki India declined nearly 5%, while Mahindra & Mahindra slipped around 3.6%.

Other auto companies also traded lower. Ashok Leyland fell more than 4.6%, while TVS Motor Company dropped about 4%. Shares of Bajaj Auto fell around 3.5%, and Hero MotoCorp declined nearly 1.7%. Auto component firms such as Samvardhana Motherson International and Uno Minda also dropped sharply, falling over 5% and 6%, respectively.

The weakness extended beyond crude-linked sectors. Engineering giant Larsen & Toubro fell more than 4%, while metal major Tata Steel declined over 4.4%.

Banking stocks also weighed on the market, with State Bank of India dropping nearly 6%. Private lenders Axis Bank, ICICI Bank and HDFC Bank fell between 3% and 4%.

Technology stocks were relatively resilient, although they too traded lower. Shares of Tata Consultancy Services, Infosys and HCLTech slipped between 1% and 1.6%.

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