Oil & Gas index jumps 2%, nears 52-week high; Oil India, ONGC soar up to 7%

At 11:21 AM on Wednesday; the BSE Oil & Gas index was the top gainer among sectoral indices, up 2.4 per cent, as compared to 0.16 per cent decline in the BSE Sensex.

Oil & Gas index movement today

 

Shares of oil & gas companies including upstream and downstream were in focus, with the BSE Oil & Gas index rallying over 2 per cent in Wednesday’s intra-day trade after a sharp rally in Oil India and Oil and Natural Gas Corporation’s (ONGC) stocks.

 

Share price of Oil India hit a 52-week high of ₹522.90, surging 7 per cent on the BSE in intra-day deals. ONGC soared 5 per cent to ₹269.10 in intra-day trade. The stock had hit a 52-week high of ₹277.80 on January 29, 2026.

 

The state-owned oil marketing companies (OMCs), Indian Oil Corporation (₹ 173.70), Hindustan Petroleum Corporation (₹464.70) and Bharat Petroleum Corporation (₹ 382.75) were up 3 per cent each in intra-day trade.

 

At 11:21 AM; BSE Oil & Gas index, the top gainer among sectoral indices, was up 2.4 per cent, as compared to 0.16 per cent decline in the BSE Sensex. The oil & gas index hit an intra-day high of 29,109.92, and was trading close to its 52-week high level of 29,249.06 touched on November 12, 2025.  Check Stock Market LIVE Updates 

What's driving state-owned oil & gas stocks?

 

According to a Bloomberg report, oil rose for the second straight day as geopolitical tensions resurfaced following the US downing of an Iranian drone near an American aircraft carrier in the Arabian Sea. Brent advanced to around $68 a barrel, after adding 1.6 per cent on Tuesday, while West Texas Intermediate Crude Oil was near $64, the report suggested.

 

Oil prices extended gains on Wednesday after the US. shot down an Iranian drone and armed Iranian boats approached a US-flagged vessel in the Strait of Hormuz, rekindling fears of an escalation in tensions between Washington and Tehran. Brent crude futures were up 56 cents, or 0.8 per cent, at $67.89 per barrel at 0400 GMT. The US West Texas Intermediate crude was up 63 cents, or 1.0 per cent, at $63.84 per barrel, the Reuters reported.

 

There has been an increase in the crude oil price from - $60 (on January 7, 2026) to – around $68, an increase of more than 13 per cent. This may have bearing on the price/volume of the ONGC and Oil India's stock prices.

 

There is an increasing trend of Brent crude oil prices and its reflection on share prices of Indian exploration & production (E&P) companies, ONGC said.

 

Meanwhile, ONGC recently signed BP Plc, UK as a technical service provider for its Western offshore assets. BP has committed up to 60 per cent incremental production over base levels of ~40mmscmd of gas and ~0.25mb/d of oil over the 10-year contract period. Achievement of even a part of the stated target could meaningfully transform ONGC’s production profile over the next 5–7 years. The management expects benefits to start flowing from Q4FY26 end.

 

With KG basin to reach ~10mmscmd by FY27, along with Daman upside and DSF II production, the share of new well gas (NWG) could increase to 35 per cent in 3-4 years from current 14 per cent, improving gas realisation even as oil sees $64-66/bbl realisation vs. $68-74/bbl earlier, analysts at ICICI Securities said in the Q2 result update. The brokerage firm retained ‘Buy’ rating on the stock with a target price of ₹320 (earlier ₹340).

 

Meanwhile, stock prices of BPCL, HPCL and IOCL has risen in the range of 12 per cent to 21 per cent in the past six months, outperforming benchmark Sensex, which was up 3 per cent, driven by refining margin strengthening, declining LPG losses and government compensation for LPG losses.    ===============================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.