Shares of crude oil-sensitive companies surged on Wednesday, tracking a sharp fall in global oil prices and a broad-based rebound in equity markets amid easing geopolitical tensions. At around 09:45 am, stocks across oil marketing companies (OMCs), aviation, paint and tyre segments were trading firmly higher, as Brent crude slipped below the $95 per barrel mark after declining for a second straight session. The fall in oil prices follows renewed optimism over a possible resumption of US-Iran talks, easing concerns over supply disruptions.

Among OMCs, Bharat Petroleum Corp shares rose over 4.4 percent, while Hindustan Petroleum Corp gained nearly 4.7 percent and Indian Oil Corporation advanced about 2.9 percent. Lower crude prices are supportive for OMCs as they help improve marketing margins, which come under pressure when oil prices rise sharply.

Aviation stocks also rallied, with InterGlobe Aviation (IndiGo) jumping around 4.7 percent, emerging as the top gainer on benchmark Nifty 50 index. Easing crude prices are expected to reduce aviation turbine fuel (ATF) costs, a key expense for airlines.

Paint stocks traded higher, with Asian Paints rising about 2.4 percent, Berger Paints gaining 1.4 percent and Kansai Nerolac up around 1.8 percent, as softer crude prices are expected to lower input costs such as solvents and resins. Tyre makers mirrored the uptrend, with Apollo Tyres, CEAT and JK Tyre gaining between 2 percent and 3.5 percent, supported by expectations of easing raw material costs linked to crude derivatives like synthetic rubber.

The rally in crude-sensitive stocks came alongside a strong broader market recovery. The Sensex was up over 1,200 points and the Nifty traded above 24,200, with gains seen across sectors such as IT, metals, realty and banking. Market breadth remained firmly positive, and India VIX declined, indicating easing volatility.

The improvement in sentiment reflects a broader shift in global risk appetite. Asian markets traded higher, while Wall Street extended gains overnight, with the Nasdaq rising nearly 2 percent and the S&P 500 moving closer to record highs. The rebound in equities follows signs that diplomatic engagement between the US and Iran may resume, reducing fears of prolonged conflict.

The cooling in crude prices marks a sharp reversal from earlier in the week, when oil had surged above $100 a barrel and weighed heavily on global and domestic markets, triggering a sell-off in oil-sensitive sectors.

Analysts said that if crude prices remain in the $90-95 range, sectors with high oil dependency and limited pricing power could continue to see relief. However, the trend remains highly sensitive to geopolitical developments.