PSU oil & gas shares in focus; BPCL, HPCL, IOC, OIL, ONGC rally up to 5%

Oil and gas stocks rallied on the BSE, led by Oil India, HPCL, BPCL, IOC, and ONGC, which rose over 1-5 per cent amid sector optimism

Oil & gas companies' share price today: Shares of public sector undertaking (PSU) oil & gas, including upstream and downstream companies, rallied by up to 5 per cent on the BSE in Wednesday’s intra-day trade.

 

Shares of key oil and gas companies gained over 1 per cent on the BSE. Oil India rose 5 per cent to ₹460.65, Hindustan Petroleum Corporation (HPCL) climbed 4 per cent to ₹420.30, Bharat Petroleum Corporation (BPCL) added 4 per cent to ₹331.70, Indian Oil Corporation (IOC) advanced 3 per cent to ₹146.70, while Oil and Natural Gas Corporation (ONGC) was up 1.7 per cent at ₹248.70.

 

At 11:45 AM, the BSE Oil & Gas index, the top gainer among sectoral indices, was up 2 per cent, as compared to a 0.33 per cent rise in the BSE Sensex.  Track LIVE Stock Market Updates Here

What’s driving oil & gas stocks today?

According to a Reuters report, oil prices fell in early trade on Wednesday as markets were assessing the outcome of US-China trade talks, yet to be reviewed by President Donald Trump, with weak oil demand from China and Opec+ production increases weighing on the market.  Brent crude oil prices slipped 0.60 per cent to $66.40 a barrel before trimming losses. 

 

Meanwhile, according to a Bloomberg report, India’s state-run refiners are planning to order 10 domestically-built vessels to transport fuels around the country as the government pushes ahead with its ambition to expand the shipbuilding industry.

 

Indian Oil Corp., Bharat Petroleum Corp. and Hindustan Petroleum Corp. plan to jointly issue a tender later this year for the medium-range tankers. The proposal could be valued at as much as $600 million, and will require delivery to start by 2028; the report suggested quoting the people familiar with the matter who asked not to be identified because the information isn’t yet public. 

 

Analysts at Elara Capital maintain their positive view on oil marketing companies (OMCs) like HPCL, BPCL and IOC amid subdued crude prices and expect the government to allow OMCs to earn above-historical integrated margin to fund their energy transition capex.  

 

International crude oil prices in Q1FY26 are at ~$65/barrel, a $10/bbl decline over the Q4FY25 level. Every $1/bbl drop in crude oil price improves OMCs’ gross margin for gasoline/diesel by ₹0.55/litre, it said. "OMCs would additionally benefit from nil Liquefied Petroleum Gas (LPG) losses in FY26 at current $65/bbl crude oil price versus ₹25,000 crore cumulative LPG losses at our previous crude oil estimate of $75/bbl”, the brokerage firm said.

 

Analysts at Elara Capital remain bullish on Oil India’s prospects due to continued growth in production, capacity expansion by 200 per cent at Numaligarh Refinery (NRL) by Q4FY26 and accelerating drilling plan for wells. 

 

As part of its 2030 strategy, Oil India aims to raise production to 10–12 million tonnes by FY30 from 8.8 million tonnes in FY25. This includes 7–8 mntoe from domestic fields, 1–2 mntoe from new wells, and 1–2 mntoe from overseas assets. The company plans to drill 75–80 wells in FY26, up from 62 in FY25, and 106 exploration wells over the next three years. It is also awaiting clearance for the Indradhanush Gas Grid Limited pipeline, which will enhance gas offtake by linking to GAIL’s national grid, according to a brokerage update.

 

Meanwhile, OMC managements expect strong marketing performance to continue in Q1FY26, supported by improved refining spreads and lower LPG under-recoveries as propane prices ease. ONGC and Oil India also project higher production driven by KG-98 and NRL, respectively, according to Motilal Oswal.