Shares of airlines, tyre and oil marketing companies (OMCs) have rallied by up to 15% on the BSE in intra-day trade after the global oil prices fell on Monday, extending a steep decline in Friday, on expectations major producers may ease output curbs.
SpiceJet, Jet Airways (India) and InterGlobe Aviation, the company that operates IndiGo, from the airlines were up in the range of 3% to 15% on the BSE. Hindustan Petroleum Corporation (HPCL), Bharat Petroleum Corporation (BPCL) and Indian Oil Corporation (IOCL) from the OMCs were up 5% each. Most of these stocks have touched their respective 52-week lows on the BSE during last week.
Balkrishna Industries, Ceat, MRF, JK Tyre and Apollo Tyres have gained in the range of 3% to 5% on the BSE, as compared to 0.51% rise in the S&P BSE Sensex at 35,102 at 11:31 am.
Oil prices extended their decline from last week on growing expectations that major oil producers may ease their 17-month-old production cuts.
A return to the oil production levels that were in place in October 2016, the baseline for the current deal to cut output, is one of the options for easing curbs, Russia's energy minister said on Saturday, the Reuters report suggested.
The slide in global crude oil prices will help India in containing inflation, current account and fiscal deficits. India imports about 80% of its crude oil requirement.