The ongoing West Asia conflict has triggered sharp declines in several Indian stocks, with companies like Hindustan Petroleum Corporation Limited, Bharat Petroleum Corporation Limited, Indian Oil Corporation Limited, and IDBI Bank emerging among the biggest wealth destroyers in the Nifty 500 index.
According to market data, IDBI Bank has been the worst performer, plunging around 36 percent since the conflict escalated on February 28. Oil marketing companies (OMCs) have also taken a significant hit, declining between 21 and 23 percent amid rising crude oil prices.
The broader market has shown relative resilience, with the Nifty 500 falling about 6.5 per cent and the Nifty 50 down 6.3 per cent during the same period.
Analysts attribute the sharp fall in OMC stocks to surging crude oil prices, which crossed $100 per barrel due to disruptions around the Strait of Hormuz—a critical global energy route. Higher crude prices are expected to severely impact the profitability of OMCs unless offset by fuel price hikes, tax cuts, or increased subsidies.
Market experts caution that companies like HPCL and BPCL are more vulnerable due to higher retail exposure, while IOC remains relatively better positioned but still at risk if crude prices remain elevated.
Meanwhile, IDBI Bank’s decline has been linked to uncertainty over the government’s proposed stake sale, which may now be reconsidered.
Other stocks such as Larsen & Toubro have also come under pressure. However, analysts suggest the engineering major remains fundamentally strong, with the recent correction largely driven by concerns over project delays and reduced order inflows in West Asia.
Experts advise investors to adopt a selective approach. While caution is recommended for oil marketing stocks, fundamentally strong companies like L&T may present buying opportunities on dips despite near-term headwinds.
Oil Surge, War Impact Drag OMCs, IDBI Bank Stocks Lower
