Winners and losers on Dalal Street as Brent prices near $40

As crude oil prices approached near $40 per barrel on Monday, shares of oil explorers slipped up to 3 per cent in Tuesday's trade, while those of airlines and paint companies gained.

Stocks of Cairn India ended 5.57 per cent lower after falling as much as 6.26 per cent to Rs 127.15, while Oil India ended 3.38  per cent down on the Bombay Stock Exchange (BSE). ONGC and GAIL scrips also dipped 3.57 per cent and 5.05 per cent, respectively.  

Global oil benchmark Brent is hovering around $41 per barrel in today's trade after it slumped 5.4 per cent to $40.66 per barrel on Monday, in a belated reaction to Organization of the Petroleum Exporting Countries' (OPEC) policy meeting on Friday, which ended without an agreement to lower production.

Brent fell below its August trough to hit its lowest level since February 2009, when the world's economy was mired in the deepest downturn since the Great Depression of the 1930s.

US crude futures also fell to as low as $37.50 per barrel, hitting a near-seven-year low.

Meanwhile, aviation stocks gained up to nearly 4 per cent on hopes that slump in oil prices would cut air turbine fuel (ATF) prices for them, boosting their margins in the ongoing peak season.

Shares of SpiceJet ended flat after gaining as much as 2.79 per cent to Rs 71.80, while Jet Airways settled the day 2.55 per cent higher after jumping 3.88 per cent to Rs 579.90 on BSE. Newly-listed IndiGo shares climbed 2.27 per cent to Rs 1,067 earlier in the day, but closed 2.54 per cent lower.

Shares of paint companies such as Asian Paints, Berger Paints and Kansai Nerolac rallied up to 2 per cent. These companies should be able to show significant net profit growth in the coming years if crude prices remain low.

The stock of Berger Paints hit an intraday high of Rs 243.15, up 2.18 per cent, while Kansai Nerolac gained 1.17 per cent to Rs 252.50 on BSE. Asian Paints stock also gained nearly 1 per cent to Rs 878.