Crude-sensitive stocks witnessed strong buying interest after global crude oil prices dropped sharply amid optimism surrounding a possible peace agreement between the United States and Iran. The decline in oil prices eased concerns over supply disruptions and inflationary pressures, boosting investor sentiment across several sectors.

Among the major gainers were InterGlobe Aviation, the operator of IndiGo, along with oil marketing companies Hindustan Petroleum Corporation (HPCL), Bharat Petroleum Corporation (BPCL) and Indian Oil Corporation (IOCL). Lower crude prices are generally positive for oil marketing companies as they reduce input costs and can support refining and marketing margins.

Aviation stocks also benefited, with lower aviation turbine fuel costs expected to improve operating profitability. Paint manufacturers such as Asian Paints gained as falling crude prices reduce the cost of petrochemical-based raw materials used in production, supporting margin expansion. Tyre companies also attracted buying interest due to expectations of lower raw material costs linked to crude derivatives.

While downstream and crude-consuming sectors rallied, upstream oil producers such as ONGC and Oil India faced pressure as lower crude prices could negatively impact their realizations and earnings.

The market reaction reflects the broader expectation that sustained weakness in crude oil prices could benefit several sectors of the Indian economy by lowering fuel, freight and raw material costs while easing inflationary pressures.