Oil‑sensitive stocks fell on Monday, 28 September, as investors turned their attention to a rebound in global crude prices after President Donald Trump rejected the latest US‑Iran peace deal proposal. The decline was driven by fading near‑term bets on a West‑Asia conflict resolution that could have eased oil demand. Market participants reacted to the sharp rise in Brent crude, which surged to $107 per barrel, and the Indian basket of crude, which remained high at $120.86 per barrel. The sectoral benchmark, Nifty Oil & Gas, slipped 1.1% to 10,739 points, down from 10,862.15 at the previous close.

Key oil‑sensitive names that posted intraday losses included Indian Oil, which dipped 1.5% to ₹133.55, and Hindustan Petroleum, falling 1.9% to ₹344.30. Bharat Petroleum slid 1.7% to ₹303.15, while Apollo Tyres fell 2% to ₹392.05. Aviation carrier IndiGo saw a 1.7% decline to ₹4,855, and paint maker Asian Paints dropped 1.2% to ₹2,414.30. Other affected stocks were Reliance Industries, Adani Total Gas, Mahanagar Gas, and JK Tyre, each posting losses between 1.6% and 2.8% during the session.

At the sectoral level, the Nifty Oil & Gas index fell 1.1%, touching an early market low of 10,739 points on Monday. This level was below the 10,862.15 points recorded at the previous equity market close, signalling a retreat in oil‑related equities. The index’s decline mirrored the broader market’s reaction to the sharp uptick in Brent crude, which rose to $107 per barrel, and the Indian crude basket, which held at $120.86 per barrel. The sell‑off reflected investors’ concerns over higher input costs for companies that rely on crude oil or its derivatives.

President Trump’s rejection of Iran’s peace proposal, which aimed to reopen the Strait of Hormuz, was announced at the UN General Assembly in New York. Trump described the deal as “unacceptable” and said the West Asian country was looking to open the key trading route within seven days as it was losing the conflict. In a telephonic interview with Axios, he said he expects US negotiators to engage in further talks with Iran this week. Iran’s Foreign Minister Abbas Araghchi acknowledged the rejection and said the country would wait for a “definitive” official US response to the deal.

The volatility in global crude prices directly affects companies that use oil or its derivatives as inputs. Oil marketing firms purchase crude to refine into petrol, diesel and other products, so any price swing alters their raw‑material costs. Airlines face the largest expense in aviation turbine fuel; a rise in jet fuel prices increases operating costs and squeezes margins. Paint and tyre manufacturers also rely on crude‑oil derivatives; higher input costs translate into lower profitability for these firms. Consequently, the surge in crude prices has triggered selling pressure across downstream, aviation, tyre and paint stocks.

With crude prices holding near $107 for Brent and $120.86 for the Indian basket, oil‑sensitive equities remain under pressure. Investors are monitoring the US‑Iran diplomatic developments closely, as any breakthrough could reverse the current trend and lift prices. Until then, the market is likely to stay cautious, with oil marketing companies, aviation carriers, tyre makers and paint producers continuing to experience margin compression. The Nifty Oil & Gas index’s decline on 28 September reflects the broader sentiment that higher input costs are weighing on profitability across the sector.