Oil-sensitive stocks witnessed strong gains in early trading on June 12 as a sharp correction in global crude oil prices boosted investor sentiment across sectors that benefit from lower energy and raw material costs. The rally was supported by expectations that easing geopolitical tensions and potential progress in Middle East negotiations could increase global oil supply and keep crude prices under pressure.

Among the key gainers, InterGlobe Aviation, the parent company of IndiGo, advanced around 3%, while Hindustan Petroleum Corporation (HPCL) rose nearly 4%. Other oil marketing companies, including Bharat Petroleum Corporation (BPCL) and Indian Oil Corporation (IOC), also traded higher as lower crude prices are expected to improve marketing and refining margins.

Tyre manufacturers such as Apollo Tyres, CEAT and JK Tyre gained between 2% and 3% as investors anticipated lower raw material costs. Synthetic rubber and several chemicals used in tyre manufacturing are derived from petroleum products, making the sector a direct beneficiary of softer crude prices.

Paint companies also attracted buying interest as many of their key inputs are linked to crude oil derivatives. Lower raw material costs could support margin expansion and improve earnings prospects if the decline in crude prices is sustained.

The move into oil-sensitive sectors reflects a broader market trend where investors rotate into industries that stand to benefit from declining energy costs. Historically, airlines, oil marketing companies, tyre makers and paint manufacturers have outperformed when crude prices soften, while upstream oil producers typically face pressure from lower crude realizations.