Reliance Industries was the biggest dragger on the Nifty Oil & Gas Index, while ONGC helped limit the losses on Tuesday.
OMC's are well positioned to benefit from fall in crude prices, improvement in refining margins, fuel consumption growth and petchem demand growth in India.
Petronet LNG is developing ethane unloading, storage and handling (USH) facilities with ethane storage tank capacity of 1,70,000 cubic meters at Dahej, Gujarat
According to Nuvama, the outlook for OMCs is clouded by high capital expenditure commitments and rising under-recoveries, which are set to keep return ratios suppressed.
On the bourses around 10:15 AM, Petronet LNG shares were struggling as the scrip was trading 1.31% lower at ₹273.95. In comparison, BSE Sensex was trading 0.29% lower at 83,289.99 levels.
Nomura has maintained its Nifty target for March 2026 at 26,140, implying a modest upside of 4 per cent from current levels, based on a FY27F earnings per share (EPS) estimate of ₹1,245.
Analyst at Bonanza recommends IGL, Uno Minda, Petronet LNG to buy today; here's why