Shares of Chennai Petroleum Corporation Ltd. and Mangalore Refinery and Petrochemicals Ltd. (MRPL) experienced significant surges in Tuesday's trading session, defying a broader market downturn. Both refinery stocks saw robust trading volumes as global crude oil prices extended gains, driven by escalating uncertainty surrounding the critical Strait of Hormuz.
Chennai Petroleum shares jumped 15.15 percent to reach a 52-week high of Rs 1,428.70, eventually settling 14.61 percent higher at Rs 1,422. The company's stock has demonstrated strong performance throughout 2026, with a year-to-date gain of 68.09 percent.
Similarly, MRPL shares climbed 10.78 percent to touch Rs 180.90 before trading 10.13 percent higher at Rs 179.85. The stock has seen a 17.01 percent increase on a year-to-date basis.
Geopolitical Tensions Drive Oil Prices
The primary catalyst for the surge in refinery stocks appears to be the renewed strength in crude oil prices. Hopes for a US-Iran deal to de-escalate tensions and reopen the Strait of Hormuz reportedly faded, following demands from US President Donald Trump for compensation from Tehran. This development has injected fresh uncertainty into the global oil supply outlook, pushing prices upwards.
Brent crude futures rose by $2.03, or 2.31 percent, to $89.75 a barrel. Concurrently, US West Texas Intermediate (WTI) crude saw a $2.20, or 2.68 percent, increase, reaching $84.33 a barrel.
Expert Insights on Refining Margins
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, commented on the situation, stating that an uptick in global crude oil prices is expected to bolster refiners like Chennai Petroleum and MRPL by enhancing their Gross Refining Margins (GRMs). GRM represents the crucial difference between the value of refined petroleum products and the cost of the crude oil feedstock.
“Q1 results of these two companies have been quite resilient. These are the stocks if the crude prices stay at elevated levels, the companies are going to get benefited in the medium- to short-term,” Bathini added, underscoring the positive correlation between sustained high crude prices and refiner profitability.
Technical Outlook for Investors
From a technical perspective, Ravi Singh, Chief Research Officer at Master Capital Services, indicated that both Chennai Petroleum and MRPL stocks display strong charts. For Chennai Petroleum, Singh advised considering a buy around Rs 1,340, setting an expected target price of Rs 1,450, with a stop loss at Rs 1,310.
Regarding MRPL, Singh noted that the counter faces resistance around the Rs 185 level, while support is observed at Rs 165.