Shares of Chennai Petroleum Corporation Ltd (CPCL), Mangalore Refinery and Petrochemicals Ltd (MRPL) and Oil India Ltd gained in Wednesday's trade as Brent crude prices climbed closer to the $100-per-barrel mark amid escalating tensions in West Asia.
CPCL shares surged 5.10 per cent to hit a record high of Rs 1,531.45. MRPL stock rose 3.84 per cent to a day's high of Rs 179.70, while Oil India shares advanced 1.73 per cent to Rs 503.70.
Antelopus Selan Energy Ltd, Hindustan Oil Exploration Company Ltd (HOEC) and Oil and Natural Gas Corporation Ltd (ONGC) were also trading higher in early deals, with gains of up to 10 per cent.
The gains came as crude oil prices extended their upward move for the fourth straight session. Brent crude futures rose $1.57 to $99.49 a barrel, marking their highest level since late June. US West Texas Intermediate (WTI) crude futures climbed $1.60 to $94.63 a barrel.
Oil prices rose amid an escalation in the West Asia conflict. Iranian-backed Houthis in Yemen launched strikes on several Saudi cities on Tuesday, while US forces hit multiple Iranian oil tankers and Iran struck a US base in Jordan.
Shipping traffic through the Strait of Hormuz also slowed at the beginning of the week after Iran threatened retaliation against any fresh US attacks. Before the conflict began in late February, the Strait of Hormuz handled around one-fifth of the world's daily oil and liquefied natural gas supplies.
Choice Institutional Equities said higher crude prices remain a headwind for oil marketing companies (OMCs), while CPCL and MRPL continue to benefit.
The brokerage has a target price of Rs 215 per share for MRPL, implying further upside from the stock's current level. For CPCL, Choice Institutional Equities has set a target price of Rs 1,540 per share.