Shares of oil and gas companies rose sharply on Wednesday morning, with many stocks gaining up to 7% in early trading. Investors showed strong interest in energy companies as crude oil prices stayed steady and global tensions supported the sector.
Oil India led the rally. Oil and Natural Gas Corporation (ONGC) also gained 4.63%, rising to ₹269.
Other major companies saw positive movement too. Indian Oil Corporation (IOC) went up 3.10% to ₹172.75. Hindustan Petroleum Corporation (HPCL) climbed 2.24% to ₹461.10. Bharat Petroleum Corporation (BPCL) increased 2.02% to ₹380.80.
The overall BSE Oil & Gas index rose 2.21% to 28,980.02, showing broad strength across the sector.
Saurabh Jain, Head of Fundamental Research at SMC Global Securities, said the market remains favourable for oil companies despite ongoing geopolitical tensions. He explained that Brent crude prices have risen slightly due to fresh concerns in the Middle East, but prices are still in a comfortable range of $65 to $70 per barrel. This level is lower than earlier highs and is seen as stable for the industry.
Because of this, investors expect oil and gas companies, especially refining and downstream firms, to perform well in the near term.