Shares of Asian Paints, IndiGo and several tyre manufacturers rallied up to 4 percent on Tuesday, as a sharp decline in global crude oil prices lifted sentiment towards sectors that stand to benefit from lower oil and petroleum-linked input costs. Brent crude steadied near $105 a barrel after plunging nearly 8 percent in the previous session amid renewed hopes of peace talks between the US and Iran.
Asian Paints and IndiGo were among the top gainers on the Nifty 50, while Berger Paints, Kansai Nerolac, CEAT and Apollo Tyres also advanced. Shares of oil marketing companies Bharat Petroleum Corporation (BPCL), Hindustan Petroleum Corporation (HPCL) and Indian Oil Corporation (IOC) traded higher, even as upstream producers ONGC and Oil India declined.
Paint manufacturers were among the prominent gainers, with Kansai Nerolac Paints rising 3.96 percent to Rs 187, Asian Paints gaining 2.68 percent to Rs 2,407.20, and Berger Paints advancing 1.89 percent to Rs 477.45. Lower crude prices are generally favourable for paint manufacturers, as it could ease input cost pressures.
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Shares of InterGlobe Aviation, the parent company of IndiGo, rose 2.48 percent to Rs 5,042, extending gains amid the sharp correction in global oil prices. Aviation turbine fuel (ATF) is a major operating expense for airlines. Lower oil prices could provide relief to the airline's profitability.