Crude Confidence Boosts Nifty Oil and Gas Index by 1.75%

India’s Nifty Oil and Gas Index saw a robust upward movement, rising by 1.75% on Monday as investor interest surged in energy sector stocks fueled by positive global cues and improving crude oil prices. The index’s rise underlines growing optimism about the sector’s earnings and demand outlook amid a broader market uptrend.

 

Key Highlights Driving The Rally

 

Nifty Oil and Gas Index marked a significant gain of 1.75%, outperforming many other sectoral indices in Monday’s trading session.

 

Major contributors to the rally included Reliance Industries, Oil and Natural Gas Corporation (ONGC), Bharat Petroleum Corporation (BPCL), and Indian Oil Corporation, all posting gains above 1%.

 

Global crude oil prices stabilizing around the $90 per barrel mark lent support to sector stocks, reflecting improved earnings forecasts.

 

Positive geopolitical developments easing supply concerns and steady demand forecasts bolstered investor confidence in the oil and gas space.

 

Sector-Wise Performance Insights

The index’s performance was boosted by strong buying interest in upstream oil producers and downstream refiners. Reliance Industries, with the highest weight in the index, rose notably, driving much of the overall movement. Midstream companies and gas distributors also contributed with steady gains, highlighting broad-based sector strength.

 

Market Context And Outlook

The surge in the Nifty Oil and Gas Index comes amid mixed signals from global markets but largely sustained by steady crude demand in Asia and supply discipline from OPEC and allied producers. Analysts expect the sector to remain attractive on valuations and potential government reforms aimed at expanding domestic oil and gas production capacity.

 

With global energy markets closely watched for volatility, investors are advised to track developments on crude inventories, geopolitical tensions, and fiscal policies impacting import costs. The energy sector could continue to offer trading and investment opportunities as the year progresses.

 

Source: NSE India, Moneycontrol, Business Today, Zee Business