BSE Oil & Gas index hits 52-wk high; what's driving ONGC, OIL India stocks?

In the past one month, the BSE Oil & Gas index has outperformed the market by gaining 2.2 per cent, as against 2.2 per cent decline in the BSE Sensex.

Oil & Gas index movement today

 

Shares of oil & gas companies continued to march higher with the BSE Oil & Gas index hitting a 52-week high at 29,447.10, gaining over 1 per cent in Thursday’s intra-day trade owing to rising crude oil prices. The index surpassed its previous high of 29,249.06 touched on November 12, 2025. 

At 09:26 AM; the BSE Oil & Gas index, was the top gainer among sectoral indices, up 0.6 per cent, as compared to 0.36 per cent decline in the BSE Sensex. In the past one month, the oil & gas index has outperformed the market by gaining 2.2 per cent, as against 2.2 per cent decline in the benchmark index. 

 

The state-owned oil marketing companies (OMCs), Indian Oil Corporation (₹178), Hindustan Petroleum Corporation (₹473.50) and Bharat Petroleum Corporation (₹391.85) and upstream companies Oil India (₹516) and Oil and Natural Gas Corporation (ONGC) (₹270.50) from the index were up in the range of 1 per cent to 3 per cent in today's intra-day trade. 

In the past one month, the market price of Oil India and ONGC has zoomed by 22 per cent and 14 per cent, respectively.  CATCH STOCK MARKET UPDATES TODAY LIVE

Why are oil & gas stocks outperforming?

 

Crude oil prices ended the day (Wednesday) on a positive note amid fears of supply disruption on account of escalating tension between the United States (US) and Iran. Nuclear talks between the US and Iran had hit a snag. Additionally, EIA weekly inventory data showed crude oil stockpiles fell by 3.5mbbl last week.

 

Meanwhile, according to a Reuters report, oil prices declined on Thursday after the US and Iran confirmed they would hold talks in Oman, easing concerns of a military confrontation that could disrupt crude supplies from the Middle East.

 

Prices had jumped nearly 3 per cent on Wednesday after reports suggested the planned talks could collapse, raising fears of renewed tensions. However, officials from both Washington and Tehran later said discussions would go ahead on Friday, though the agenda has yet to be finalised, calming markets.

 

Short-term concerns have lifted crude prices by 11 per cent in January, with potential for another 4–5 per cent upside. However, the medium- to long-term outlook remains restrained, according to analysts.

 

China's week-long Lunar New Year break is expected to soften industrial demand, while OPEC+ maintaining its output freeze until Q1-2026 has kept market conditions relatively tight. Mohammed Imran, research analyst, Mirae Asset Sharekhan expects WTI to trade within a broader $59–$66/b range in the coming weeks, and a dip-buying approach remains preferable in the near term. CLICK HERE FOR DETAILS

ONGC, Oil India clarification on price movement

 

ONGC and Oil India, in separate regulatory filing, said that the rises in the company’s share prices are attributable to the increase in the world crude oil prices.

 

The company is engaged in the business of E&P (Exploration and Production) of Crude Oil and Natural Gas. It is also to inform that the prices of crude oil and gas are dependent on the world market and geopolitics. 

 

There has been an increase in the world crude oil price from ~$60 (on January 1, 2026) to ~$67 (on January 28, 2026), an increase of 10.5 per cent, ONGC had said on January 28, 2025.  ALSO READ | IT shares in focus as ADRs slide overnight; why are tech stocks falling?

Choice Equity Broking view on ONGC, Oil India

 

Oil India is displaying a strong bullish continuation structure on the daily chart, with price breaking out to fresh 52-week highs, confirming sustained upward momentum. The recent rally has been supported by a series of higher highs and higher lows, highlighting a well-established uptrend.

 

Structurally, the previous consolidation zone around ₹480–₹490 now acts as a key support base. As long as price sustains above this zone, the trend remains positive and favours further upside toward the ₹540– ₹560 target zone in the near term, according to Aakash Shah, Technical Research Analyst at Choice Equity Broking.

 

ONGC has witnessed a sharp bullish breakout from its recent consolidation range, supported by strong bullish candles and rising volumes. The stock has decisively moved above its short-term and medium-term moving averages, indicating a shift in momentum in favour of buyers. Structurally, the breakout zone around ₹250– ₹255 now acts as an important demand area. Sustained holding above this zone keeps the bullish structure intact and opens the door for further upside toward the ₹280–₹290 target zone, said Aakash Shah.  =================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.