New Delhi | Shares of oil marketing companies plunged on Thursday as the escalating tensions in West Asia drove crude oil prices sharply higher.

According to market analysts, oil marketing companies came under pressure as higher crude prices threaten to squeeze their refining and marketing margins.

Shares of Hindustan Petroleum Corporation Ltd tumbled 7.42 per cent to hit the 52-week low of Rs 323.35 on the BSE.

The stock of Bharat Petroleum Corporation Ltd dropped 5.67 per cent to Rs 286.45, and Indian Oil Corporation declined 3.70 per cent to Rs 143.

Brent crude, the global oil benchmark, surged 6.25 per cent to USD 114.1 per barrel.

Stock markets also took a heavy beating after a three-day rally and were trading with deep cuts. The 30-share BSE Sensex tanked 1,847.05 points, or 2.41 per cent, to 74,857.08 in the late afternoon trade. The 50-share NSE Nifty dropped 587.40 points, or 2.47 per cent, to 23,190.40.

"Indian equity markets opened sharply lower with a significant gap-down, as rising crude oil prices and escalating geopolitical tensions triggered a strong risk-off sentiment across global markets. Early trade reflected broad-based selling pressure after the previous three-session recovery, indicating that investors are turning cautious once again," Ponmudi R, CEO of Enrich Money, said.