Shares of CEAT, BPCL, HPCL, IOC and other crude-sensitive companies rose on Thursday, with CEAT surging more than 4 percent, as global crude oil prices extended losses for a third straight session, raising hopes of lower input costs for sectors ranging from oil marketing and aviation to tyres and paints.

At around 10:00 am, CEAT emerged as one of the biggest gainers, jumping 4.4 percent, while JK Tyre & Industries rose over 3 percent and Apollo Tyres gained more than 2 percent. Among state-run oil marketing companies (OMCs), BPCL advanced 2.4 percent, HPCL climbed 2.4 percent, and Indian Oil Corporation (IOC) gained about 2 percent.

The positive sentiment extended to other sectors that benefit from softer crude prices. Airline operator InterGlobe Aviation (IndiGo) traded higher by 0.65 percent. Paint manufacturers Asian Paints, Berger Paints, and Kansai Nerolac also posted modest gains. In contrast, upstream oil producers Oil India and ONGC, whose earnings are linked to crude prices, traded in the red, falling 0.9 percent and 0.2 percent, respectively.

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Global oil prices came under pressure after Qatar said Iran and the United States had made "positive progress" in indirect talks concerning the Strait of Hormuz, easing fears of supply disruptions through one of the world's most important oil transit routes. However, officials stopped short of indicating any breakthrough towards a broader and lasting peace agreement.

Brent crude futures fell 77 cents, or 1.1 percent, to $70.80 a barrel by 0256 GMT, while U.S. West Texas Intermediate crude slipped 84 cents, or 1.2 percent, to $67.74 a barrel. Both benchmarks had also fallen more than 1 percent in the previous session and were trading at their lowest levels in about four months.

The decline in crude prices follows a sharp rally seen during the recent Israel-Iran conflict, when concerns over possible disruptions to shipping through the Strait of Hormuz pushed oil prices higher. With geopolitical tensions easing and tanker traffic normalising, the risk premium built into crude prices has largely unwound.

Lower crude prices are generally positive for OMCs because they reduce working capital requirements and ease pressure on marketing margins. Tyre manufacturers benefit as natural and synthetic rubber, carbon black and other petroleum-derived inputs become relatively cheaper. Paint makers also gain because a significant portion of their raw materials are crude-linked chemicals and derivatives.

Airlines typically benefit from lower aviation turbine fuel (ATF) costs, as fuel accounts for one of the largest components of operating expenses. Softer crude prices can therefore support profitability if the decline is sustained.

The gains in crude-sensitive counters came amid a broadly positive market. At 10:00 am, the Sensex was up 407 points, or 0.5 percent, at 77,330, while the Nifty rose 123 points to 24,129. India VIX fell 3.6 percent, signalling easing volatility, while the Nifty Midcap 100 and Nifty Smallcap 100 indices gained 0.4 percent and 0.5 percent, respectively.

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