Asian Paints, IndiGo rise up to 4%, lead gains in aviation, paints, tyre stocks as crude oil falls nearly 8%

Asian Paints and IndiGo were among the top gainers on the Nifty 50, while Berger Paints, Kansai Nerolac, CEAT and Apollo Tyres also advanced. Shares of oil marketing companies Bharat Petroleum Corporation (BPCL), Hindustan Petroleum Corporation (HPCL) and Indian Oil Corporation (IOC) traded higher, even as upstream producers ONGC and Oil India declined. Paint manufacturers were among the prominent gainers, with Kansai Nerolac Paints rising 3.96 percent to Rs 187, Asian Paints gaining 2.68 percent to Rs 2,407.20, and Berger Paints advancing 1.89 percent to Rs 477.45.

Lower crude prices are generally favourable for paint manufacturers, as it could ease input cost pressures. Shares of InterGlobe Aviation, the parent company of IndiGo, rose 2.48 percent to Rs 5,042, extending gains amid the sharp correction in global oil prices. Aviation turbine fuel (ATF) is a major operating expense for airlines. Lower oil prices could provide relief to the airline's profitability.

Tyre manufacturers also attracted buying interest, with CEAT rising 2.78 percent to Rs 3,323.50, Apollo Tyres gaining 1.55 percent to Rs 395.95, and JK Tyre advancing 0.87 percent to Rs 326.25. The tyre industry uses crude-derived inputs, including synthetic rubber and carbon black as raw materials. Among oil marketing companies, HPCL gained 1.85 percent to Rs 354.45, IOC rose 1.72 percent to Rs 136.90, and BPCL advanced 0.36 percent to Rs 294.10.

In contrast, upstream oil producers came under pressure. Oil India fell 1.95 percent to Rs 452.90, while ONGC declined 1.71 percent to Rs 230.82. Lower crude prices can weigh on the earnings outlook for oil exploration and production companies by reducing realisations. SpiceJet was another laggard, falling 1.45 percent to Rs 7.50, diverging from the gains in IndiGo. Brent crude steadied near $105 a barrel in Asian trading on Tuesday, while West Texas Intermediate (WTI) traded below $97, after both benchmarks plunged nearly 8 percent on Monday.

The sharp selloff followed signals from the US and Iran indicating a willingness to pursue peace talks. Monday's decline marked the biggest fall in WTI prices in three months and followed a strong rally in October, when Brent surged almost 14 percent to a six-month high amid concerns about renewed hostilities between the US and Iran, despite a recovery in exports from the Persian Gulf. The gains in oil-linked sectors came amid a broader rally in Indian equities. At 12:35 pm, the Sensex was up 855 points, or 1.1 percent, at 76,548, while the Nifty climbed 230 points to 23,671.