Shares of Hindustan Petroleum Corporation Ltd (HPCL) jumped 4.35% to ₹410.35 in early trade on Monday, driven by the steepest single-day fall in global crude oil prices since March 2022. The stock opened strong from its previous close of ₹393.25 and touched an intraday high of ₹414.80, pushing its market capitalization to ₹87,262 crore.
The sharp correction in oil prices followed the announcement of a complete ceasefire between Israel and Iran by US President Donald Trump. This geopolitical development is expected to stabilize oil supply chains and allow Iran, a key OPEC producer, to ramp up exports—alleviating recent supply-side fears.
Brent crude slipped below the $70 mark, falling over 3.7% to $68.79 a barrel, while WTI dropped nearly 4% to $65.46 per barrel—levels last seen in early June. The correction benefits downstream companies like HPCL by lowering input costs and improving marketing margins.
While oil-marketing companies (OMCs) like HPCL, BPCL, and IOC gained on the news, upstream producers such as ONGC and Oil India may face pressure due to the fall in realizations.
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