Stocks In The Oil & Gas Industry Rally Up to 4% as Crude Prices Dip Globally

Mumbai, June 11 (12:02 PM IST) – Shares of leading Indian oil and gas companies HPCL and BPCL climbed by 4% on Tuesday, buoyed by a continued decline in global crude oil prices. The positive sentiment lifted several key stocks in the sector, pushing the Nifty Oil & Gas index higher in early trade. Reliance Industries became the top performer on the Sensex for the session, while ONGC emerged as the top gainer on the Nifty for the day.

Indian Oil And Gas Sector Blooms

Stock of Hindustan Petroleum Corporation Ltd (HPCL) and Bharat Petroleum Corporation Ltd (BPCL) rose nearly 4%, trading around ₹421 and ₹332 per share, respectively. Indian Oil Corporation (IOC) followed with a 2.5% gain to approximately ₹146.

Reliance Industries also witnessed a strong move, gaining 1.6% to ₹1,461 per share, which is its highest level in the last eight months. The stock emerged as the top performer on the Sensex during the session. ONGC added 2%, becoming the top gainer on the Nifty for the day.

Crude Price Decline Lifts Market Spirits

Investor optimism in the oil and gas sector is supported by falling global oil prices, which are expected to improve refining and marketing margins for Indian companies. Brent crude futures slipped 0.3% to $66.68 per barrel, while US West Texas Intermediate fell to $64.82 per barrel.

The drop in prices comes amid rising global inventories and expectations of lower demand from China. Further, the decision by OPEC+ to gradually ramp up production has added downward pressure on prices. The reasons combined make it a favorable scenario for oil marketing companies in India.

Outlook

As crude prices continue to retreat, Indian oil and gas stocks are gaining momentum. Improved margin prospects and sector-wide enthusiasm have positioned these companies for potential short-term strength, particularly in the refining and retail segments. By 12:05 PM on June 11, the Nifty Oil & Gas index was trading over 2% higher, reflecting broad-based gains across major players like HPCL, BPCL, IOC, and Reliance.

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