ONGC and Oil India Shares Jump as Crude Prices Rise, But OMCs, Tyre, and Aviation Stocks Take a Hit

The stock market saw some interesting moves today as crude oil prices climbed higher. Shares of upstream oil companies like ONGC and Oil India shot up by as much as 5%, riding the wave of rising crude prices. But it wasn’t all good news for the energy sector — oil marketing companies (OMCs), tyre makers, and airlines slipped lower as worries about rising costs started to weigh on their stocks.

Crude Oil Prices Push Up ONGC and Oil India

Global crude prices have been ticking upwards recently, thanks to worries about tight supply and steady demand. Brent crude crossed the $90 per barrel mark, and that gave a big boost to companies that actually drill and produce oil, like ONGC and Oil India.

Because these companies sell crude directly, higher prices mean better earnings for them. Their costs don’t change much, so when oil prices rise, their profits usually jump. Investors quickly picked up on this and started buying shares, sending their prices up by around 5% today.

Downstream Players Feeling the Heat

Meanwhile, oil marketing companies — the ones that refine crude and sell petrol and diesel to customers — didn’t share the same luck. Stocks of companies like Indian Oil, Bharat Petroleum, and Hindustan Petroleum slipped lower.

Why? Even though crude prices are rising, fuel prices at the pump don’t always go up right away. Government rules and competition often keep retail fuel prices steady. So, OMCs end up paying more for crude but can’t immediately charge customers more, which squeezes their profits.

Rising Costs Hit Tyre Makers and Airlines

The ripple effects didn’t stop there. Tyre companies also took a hit because many of their raw materials, like synthetic rubber, come from petroleum. When crude prices go up, tyre manufacturers face higher production costs, and investors got cautious.

Airlines, too, saw their shares dip. Jet fuel is one of the biggest expenses for airlines, and higher crude means more expensive fuel. Although air travel is picking up after the pandemic slowdown, rising fuel costs put extra pressure on their profits. This made investors hesitant, pulling aviation stocks down.

Why Are Some Sectors Up While Others Are Down?

The key takeaway from today’s market action is that higher crude oil prices don’t affect every company the same way. Oil producers like ONGC and Oil India benefit directly from higher prices, so their stocks jump. But companies that rely on petroleum products — like OMCs, tyre makers, and airlines — face increased costs that they can’t always pass on to customers quickly, which hurts their margins and share prices.

What to Watch Going Forward

Crude oil prices will continue to be a big factor for these sectors in the coming days and weeks. If prices stay high, upstream oil companies might keep gaining. But the pain for downstream players and cost-heavy sectors could continue unless fuel prices rise too or input costs come down.

Investors will be watching global oil supply, demand trends, and government policies closely to see how this all plays out.