Petroleum companies that are in the field of exploration and refining were in focus in today’s trade, surging as much as 16%. The rise in these stocks was followed by a hike in crude oil prices.
The share price of MOIL jumped the highest to an intra-day high of Rs 287 and closed 20% higher at Rs 297.65 on the National Stock Exchange. Chennai Petroleum Corporation surged 8.5% to a high of Rs 1,073, finally ending 6.21% higher at Rs 1,049.95.
Not just petroleum stocks, Aegis Logistics, an LPG importer, was the top gainer in the Nifty Oil & Gas index, jumping as much as 7.76% to the day’s high of Rs 651, settling 2.67% up at Rs 620.20. It was followed by Oil India, GAIL (India), Petronet LNG, Oil and Natural Gas Corporation, Indraprastha Gas, and Reliance Industries. The sectoral index, Nifty Oil & Gas, rose 0.4% to 11,157.15.
Rise in crude oil prices
Oil prices jumped in early Asian trading, with Brent crude holding above $100 a barrel amid persistent concerns over potential supply disruptions linked to the US-Israel conflict with Iran.
Crude oil prices rallied over 4% above Rs 9,100 on the Multi-Commodity Exchange of India, following WTI crude’s rebound above $98 after a prior 5% drop.
“The surge was driven by escalating West Asia tensions, with Iran increasing attacks on energy infrastructure, heightening global supply risks. Despite some relief as tankers passed through the Strait of Hormuz safely, uncertainty remains. India is negotiating six additional vessels to secure supply routes,” said Ajay Kedia, Founder of Kedia Commodity Advisors.
Meanwhile, the US continues allowing Iranian crude shipments via Hormuz and has activated direct communication with Iran, indicating efforts to prevent further disruption in global oil flows.
Snapshot of major indices
Indian equity benchmarks gained steadily in Tuesday’s trade, with the Sensex rising 479.43 points, or 0.63%, to 75,982.28, while the Nifty climbed 148.20 points, also up 0.63%, to 23,557. All the major indices were trading in the green.
Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor.
