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Shares of Hindustan Petroleum Corporation Limited, Indian Oil Corporation Limited and Bharat Petroleum Corporation Limited gained up to 2% on Wednesday after crude oil prices dropped 5% amid growing hopes of a ceasefire that could ease supply disruptions from the Middle East.U.S. President Donald Trump said Washington and Tehran are “currently in negotiations” and suggested that Iran is eager to strike a peace deal, even as the Islamic Republic has denied holding any direct talks with the United States.In a much-needed breather, oil prices tumbled over 5% on Wednesday. Brent crude futures dropped $6.21, or 5.9%, to $98.28 a barrel by 0058 GMT, after touching a low of $97.57. U.S. West Texas Intermediate crude futures fell $4.67, or 5.1%, to $87.68 a barrel, having slipped earlier to $86.72.Downstream stocks usually come under pressure when oil prices rise, as their input costs increase sharply while their ability to pass these costs on remains limited. These companies buy crude at higher prices, refine it, and sell the end products, but pricing is often regulated, restricting full cost pass-through to consumers. As a result, margins get squeezed when product prices do not rise in line with crude.Iran’s latest statement allowing non-hostile vessels to pass through the Strait of Hormuz signals a notable shift from the de facto blockade seen in recent weeks. In the early phase of the conflict, the IRGC had adopted a far more aggressive stance, issuing radio warnings that no ships would be allowed to transit. While it stopped short of a formal blockade, the group had warned that any vessel entering the Strait could be set ablaze.Sensex, Nifty today: Catch all the LIVE stock market action hereWhat are analysts saying?Earlier this month, international brokerage firm UBS downgraded the three counters following mounting uncertainty over rising crude oil prices amid US, Israel-Iran war. The international brokerage revised target prices to Rs 175 for IOCL from Rs 190, Rs 365 for BPCL from Rs 425, and Rs 340 for HPCL from Rs 540.Rising geopolitical tensions and the recent surge in crude prices have created uncertainty around earnings for Indian state-owned oil marketing companies, drawing parallels with the oil market disruption seen in 2022, UBS analysts said.Given their higher dependence on fuel marketing, these companies also face pressure when profits shift from marketing to refining. Reflecting this, marketing margin estimates for FY27 and FY28 have been cut by 43-45% and 22-26%, respectively. From a market standpoint, the biggest losers are likely to be oil refiners, downstream companies and gas players. Elara Securities notes that beyond $110 per barrel, the buffer begins to wear thin.Oil marketing companies such as HPCL, BPCL and Indian Oil are the most vulnerable, the domestic brokerage said in a note earlier this week. Higher gross refining margins may offer some cushion, but they are unlikely to fully offset the hit from shrinking retail margins and rising LPG losses. At current Brent levels of around $100 per barrel, earnings could decline sharply, in the range of 90% to 190%, unless there is a fuel price hike, tax cuts or higher LPG subsidies.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)

Drones hit a fuel tank and sparked a fire at Kuwait International Airport, the Gulf state's civil aviation authority said on Wednesday, reporting no casualties.Citing preliminary information, the Directorate General of Civil Aviation said in a statement posted online that the attack had caused only "limited" damage.Also Read | Iran's 'nuclear' option"The relevant authorities immediately implemented the approved emergency procedures" and firefighters had been deployed to bring the blaze under control, said agency spokesman Abdullah Al-Rajhi.The Kuwait airport has come under attack several times since the regional war began on February 28, when Israel and the United States launched strikes on Iran.On March 14, the civil aviation authority said an attack with "several drones" targeted the airport and "struck its radar system". No casualties were reported.Drones hit fuel tanks at the airport on March 8, and an earlier attack on a passenger terminal left several people mildly wounded and caused some damage.

Mumbai: Investors may soon be able to gift mutual fund investments, with Sebi proposing to allow the use of prepaid payment instruments (PPIs), or gift cards, for subscribing to mutual fund units. Under the proposed framework, an individual can purchase a gift PPI - either digitally or in physical form - through banking channels and transfer it to a recipient. The recipient, after claiming ownership, can redeem the instrument to invest in mutual fund schemes via an asset management company (AMC) platform. The move is aimed at attracting first-time investors and improving access to financial products. The issuance and operation of PPIs will continue to be governed by Reserve Bank of India (RBI) rules, while mutual fund transactions will fall under Sebi regulations. Gift PPIs will be capped at ₹10,000, will be non-reloadable, and valid for one year, Sebi said in a consultation paper on Tuesday. The regulator has proposed a series of safeguards, including mandatory third-party validation checks to confirm ownership, compliance with 'no third-party payment' norms, and an investment cap of ₹50,000 per investor per mutual fund per financial year across PPIs, e-wallets, and cash. To prevent idle balances, the entire value of the gift PPI must be invested. If the instrument remains unclaimed after one year, the amount will be refunded to the purchaser's bank account, Sebi said. While the purchaser may suggest a mutual fund scheme, the recipient will retain full discretion over the final investment choice. Investors can also choose to invest directly or through distributors. Sebi has sought public comments on the proposal by April 14.