Chennai Petroleum, MRPL shares jump despite weak market; here is why

Shares of Chennai Petroleum Corporation Ltd and Mangalore Refinery and Petrochemicals Ltd (MRPL) surged in Wednesday's trade, bucking the sharp weakness in domestic benchmarks.

Chennai Petroleum jumped 7.35 per cent to hit a 52-week high of Rs 1,225.55. The stock was later trading 4.06 per cent higher at Rs 1,188, taking its gains in calendar year 2026 to 40.43 per cent.

MRPL climbed 6.93 per cent to touch Rs 157.40 level. It was last seen trading 4.14 per cent higher at Rs 153.30. The stock has remained largely flat on a year-to-date (YTD) basis, down 0.26 per cent.

Both counters witnessed strong trading volumes alongside the price surge.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said a rise in crude oil prices is expected to support refiners such as Chennai Petroleum and MRPL by improving their gross refining margins (GRMs).

GRM refers to the difference between the value of petroleum products produced by a refinery and the cost of the crude oil used as feedstock.

Oil prices extended gains on Wednesday after escalating hostilities in the Middle East raised concerns over potential supply disruptions.

At last check, Brent crude futures were up $1.74 or 1.81 per cent at $97.74 a barrel, while US West Texas Intermediate (WTI) crude rose $1.85 or 1.97 per cent to $95.61 a barrel.

Both benchmarks had settled at a one-week high in the previous session.

The latest gains in oil came after tensions escalated in the Gulf region. Kuwait's military said its air defence systems were intercepting incoming missiles and drones after the country came under aerial attacks.

In an initial statement, Kuwait's General Staff said its forces were "currently confronting hostile missile and drone attacks," adding that explosions heard across the country were linked to interception operations.

Iran's state broadcaster IRIB claimed that US military bases in Kuwait had been targeted in response to what it described as "hostile actions" by the United States in the Persian Gulf, the Strait of Hormuz and on Qeshm Island.

The US Central Command (CENTCOM) dismissed Iran's assertions, stating that reports of American military bases in the region being hit were inaccurate.