Hindustan Petroleum Corporation dropped 6.95%, Bharat Petroleum Corporation fell 6.93% and Indian Oil Corporation slipped 4.86%.
In the commodities market, Brent crude (May 2026 contract) spiked amid escalating geopolitical tensions in West Asia, pushing prices close to the $116 per barrel mark and unsettling energy markets.
The surge in oil prices weighed on broader market sentiment, with the Nifty 50 also trading 2.77% lower at 23,773.80.
Higher crude prices tend to hurt PSU oil retailers because domestic LPG and kerosene are sold at regulated rates. When global oil prices rise sharply, these companies often face higher under-recoveries on such sales, which can impact profitability.