** U.S.-Israel strikes on Iran that killed Supreme Leader Ali Khamenei and spurred a rise in crude prices could have adverse consequences on Indian sectors, brokerages say

** Brent crude LCOc1 up 6.7% at $77.8 a barrel on Monday

** Higher oil prices will likely hurt Indian oil marketing cos, paints, agro-chemicals, building materials, and tyre makers, according to Jefferies, BofA Securities and Bernstein

** Larsen & Toubro LART.NS particularly exposed, with Middle East forming ~50% of its order book and ~40% of revenue

** Building-materials players (tiles, PVC pipes) could see margin pressure due to higher gas costs

** Upstream oil cos, such as ONGC ONGC.NS and Oil India OILI.NS, to benefit from higher crude, while BPCL BPCL.NS, HPCL HPCL.NS and IOC IOC.NS face sharp profitability hit

** Agro-chemical firms at risk as India imports ammonia and sulphur via Strait of Hormuz

** Higher crude could raise India's borrowing costs, lift bond yields, and reduce PSU banks' treasury gains

** A 10% rise in crude will trim 200–250 bps from margins at Asian Paints ASPN.NS and Kansai Nerolac KANE.NS

** Indian benchmarks fall 1.3%, with broad-based sector declines on Monday .BO

(Reporting by Bharath Rajeswaran in Bengaluru)

((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))