Shares of Hindustan Petroleum Corporation Limited (HPCL) rallied nearly 4% during Monday’s trading session after global crude oil prices witnessed a steep decline following optimism surrounding a potential agreement between the United States and Iran.
The rally in oil marketing companies came as lower crude oil prices are generally considered beneficial for downstream refiners and fuel retailers, helping improve marketing margins and reducing inventory-related losses.
At around 11 AM, HPCL shares were trading near the day’s high after touching an intraday high of Rs 412.55 on the NSE.
HPCL share price Performance
As of 11 AM, HPCL stock recorded the following trading levels:
- Today’s Low: Rs 403.00
- Today’s High: Rs 412.55
- Opening Price: Rs 403.00
- Previous Close: Rs 389.65
- 52-Week Low: Rs 316.20
- 52-Week High: Rs 508.45
- Live Volume: 65,60,160 shares
The sharp upside move reflected improving investor sentiment toward oil marketing companies after the correction in crude prices.
Crude Oil Prices Fall Sharply
Crude oil prices declined significantly on Monday after reports indicated progress toward a possible US-Iran agreement.
On the domestic commodities market, MCX crude oil futures dropped 5.08% to Rs 8,702 per barrel during early trade.
In the international market:
- Brent crude fell 4.8% to $98.52 per barrel
- WTI crude futures declined 5% to $91.76 per barrel
Notably, Brent crude slipped below the $100 per barrel mark for the first time this month, triggering optimism across oil-sensitive sectors.
US-Iran Deal Boosts Market Sentiment
Investor sentiment improved after US President Donald Trump stated over the weekend that a deal with Iran had been “largely negotiated,” with further details expected soon.
According to reports, the proposed agreement may include reopening the Strait of Hormuz, one of the world’s most critical energy shipping routes that handles nearly one-fifth of global oil and LNG supplies.
Any easing of geopolitical tensions in the region is expected to improve global oil supply expectations and reduce concerns over supply disruptions, leading to lower crude prices.
Disclaimer: This article is for informational purposes only and should not be considered as investment advice. Stock market investments are subject to market risks. Readers are advised to consult certified financial advisors before making any investment decisions. Past performance does not guarantee future returns. The views and market data mentioned are based on publicly available information and may change without notice. Always conduct independent research and assess risk appetite before investing in equities or related financial instruments.