On Friday, October 23, oil‑linked stocks fell 2–5% as crude prices climbed above $114 a barrel, reflecting heightened geopolitical tensions in West Asia. Brent crude rose 3% this week to a high of $114.7 per barrel, the highest since the market reopened on Monday, October 19. Investors focused on escalating conflicts between Saudi Arabia and Yemen’s Houthis and concerns over the Strait of Hormuz, which could worsen supply disruptions.

The rise in crude prices follows U.S. President Donald Trump’s declaration that petroleum production and refining are essential to national defence, opening the door for more U.S. fossil fuel projects. This policy shift, combined with Middle East tensions, has increased market volatility and prompted a sell‑off in oil‑sensitive sectors across India.

Oil marketing companies suffered a 3% decline each: Bharat Petroleum Corporation Limited fell to an intraday low of ₹277.75, Hindustan Petroleum Corporation Limited traded at ₹330.25, and Indian Oil Corporation settled at ₹126.80 on the NSE. The fall in HPCL shares is partly due to a 6% drop in September quarter net profit, where losses on fuel sales eroded gains from refining margins, compressing marketing margins when retail fuel prices cannot be fully passed on due to government intervention.

Paint and tyre stocks also faced pressure. Asian Paints slipped 1% to ₹2,260, Berger Paints India dropped 2% to ₹459.30, Kansai Nerolac Paints fell 2.5% to ₹178.5, and Indigo Paints declined 2% to ₹993.50. Tyre companies saw declines: CEAT fell 6% to an intraday low of ₹3,012.60, MRF slipped 2% to ₹1,16,900, Balkrishna Industries and Apollo Tyres fell 3% each to ₹2,054.20 and ₹385.55 respectively, as crude‑linked derivatives like synthetic rubber became more expensive.

In the aviation sector, InterGlobe Aviation (IndiGo) declined 2% to an intraday low of ₹4,504 on the NSE, while SpiceJet shares slipped 5% to ₹7.77. The broader sell‑off reflects higher input costs that pressure margins across the economy, with crude price increases negatively impacting sectors that rely on oil‑derived inputs and fuel consumption.