Brent oil futures hit $110 a barrel! These stocks to watch next week

For paints makers, margin are under threat due to elevated crude and crude-linked input cost, which account for 30-50 per cent of raw material cost. There are also concerns over higher-cost RM inventory. ICICI Securities in a recent note suggested that Asian Paints has announced an additional 3 per cent price hike from November, while cumulatively paint companies have taken 11–15 per cent price hikes since Q4FY26. The brokerage expected other players to follow if raw material inflation persisted.

In the case of tyres, continuous price hikes have helped to pass on the costs, but  elevated rubber and crude prices is delaying the expected margin recovery. For an airline such as InterGlobe Aviation Ltd (IndiGo), ATF fuel accounts for 30–40 per cent of airline operating costs.

Cost pressures will outpace realisation gains, HDFC Institutional Equities said in a Q2 preview on chemical manufacturers,  as it noted that chemical companies are currently sitting on a high-cost inventory with limited scope for price pass-through, resulting in limited revenue improvement and margin compression sequentially in Q2. A rise in raw material cost, due to higher crude prices globally, is thus worrisome.

The fresh upmove in oil prices come as Houthi attacks on Saudi Aramco facilities, fresh shipping incidents around the Strait of Hormuz and reports of Russian refinery disruptions increased the geopolitical risk premium. Crude prices received additional support from a sharp decline in US inventories and temporary hurricane-related production shutdowns, said Ponmudi R, CEO of Enrich Money.

Brent eventually settled at $109.69 as the Hormuz crisis kept supply risks elevated. Despite efforts by the IEA and the United States to release additional emergency oil supplies, uncertainty over Middle East exports and shipping routes continued to support prices, analysts said.

"A sustained move near these levels could add to inflationary pressures, weigh on the rupee and complicate the outlook for domestic yields and corporate earnings," said Hariselvan Radhakrishnan, Founder & CEO of HST Wealth.