Why Chennai Petroleum, MRPL shares surged up to 15% today

Shares of Chennai Petroleum Corporation Ltd and Mangalore Refinery and Petrochemicals Ltd (MRPL) surged in Tuesday's trade, bucking the broader weakness in domestic benchmarks, as crude oil prices extended gains amid renewed uncertainty over the Strait of Hormuz.

Chennai Petroleum jumped 16.79 per cent to hit a 52-week high of Rs 1,449. The stock eventually settled 14.92 per cent higher at Rs 1,425.85, taking its gains in calendar year 2026 to 68.54 per cent.

MRPL climbed 11.94 per cent to touch Rs 182.80 level. It closed 10.93 per cent higher at Rs 181.15. With this, the stock has climbed 17.86 per cent on a year-to-date (YTD) basis.

Both stocks also saw strong trading volumes during Tuesday's session.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said a sustained rise in global crude oil prices, along with healthy gross refining margins (GRMs), could support refiners such as Chennai Petroleum and MRPL.

"Q1 results of these two companies have been quite resilient. These are the stocks if the crude prices stay at elevated levels, the companies are going to get benefitted in the medium- to short-term," he added.

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.

From a technical perspective, Ravi Singh, Chief Research Officer at Master Capital Services, said both Chennai Petroleum and MRPL appeared strong on the charts.

For Chennai Petroleum, Singh advised entering the stock around Rs 1,340, with an expected target price of Rs 1,450 and a stop loss at Rs 1,310.

On MRPL, Singh said the counter faces resistance around Rs 185 level, while support is seen at Rs 165.

Crude oil prices

Oil prices extended their gains on Tuesday after hopes of a US-Iran deal to end the conflict and reopen the Strait of Hormuz faded.

US President Donald Trump responded to Iran's conditions for a peace deal by demanding compensation from Tehran for people killed in wars, attacks and protests. The development added to uncertainty around efforts to reopen the key oil transit route.

At last check, Brent crude futures were up $2.03 or 2.31 per cent at $89.75 a barrel, while US West Texas Intermediate (WTI) crude rose $2.20 or 2.68 per cent to $84.33 a barrel.