The purchasing that was done in oil marketing companies (OMCs) on Wednesday was a major contribution to the gains that were observed in the oil and gas stock market. These gains were witnessed on Wednesday. The Hindustan Petroleum Corporation Limited (HPCL), the Bharat Petroleum Corporation Limited (BPCL), and the Indian Oil Corporation are all instances of oil marketing companies (OMCs). Gas producers such as Gujarat Gas, Indraprastha Gas, and Gas Authority of India Limited (GAIL India), amongst others, fall under this category. In addition, the price of shares in industry giant Reliance Industries (RIL) rose by roughly one percent from the previous day. There was a sudden increase in the price of oil shares when it was announced by the brokerage Kotak Institutional shares that OMCs’ most recent GRMs were difficult to accept. This news caused the price of oil shares to skyrocket.
In addition, it is crucial to emphasize that oil stocks are presently on a winning run despite the fact that crude oil futures are currently decreasing as a consequence of decreased demand. This is despite the fact that oil futures are currently traded at lower prices. Despite the fact that futures contracts for crude oil have been trading at lower prices, this is still the case.
The BSE Oil & Gas index had reached a new high of 18,077.81 by the time the trading day’s third hour had passed. This represents an increase of 235.34 points, or 1.32%, from its previous figure. The Nifty Oil & Gas index reached a new high of 7,472.80 over this time period, which represents an increase of 1.09%.
The most significant gainer on the index was HPCL, which saw its share price rise by 5.5% to reach 276.60 on the BSE. This made HPCL the firm with the highest gain overall. Share prices increased for both BPCL and Indian Oil, with BPCL’s price going up by 3.34% to reach $368 per share and Indian Oil’s price going up by 1.84% to reach $90.99 per share respectively.
IGL’s share price rose by 1.3%, bringing it to $468.50 per share, while Gujarat Gas’ share price rose by 1.12%, bringing it to $484.35 per share. Both companies share prices are now higher than they were before. The price of GAIL shares increased by 0.5%, reaching 105.20, while the price of heavyweight RIL shares increased by 0.8%, reaching 2,499. The cost of a single share of Adani Total Gas increased marginally and hit a new all-time high price of 680.70 dollars.
On the other side, since it was originally listed, ONGC has seen its share price progressively increase to 153.85. In addition, the price of a unit of Petronet LNG has remained relatively unchanged at a cost of 223.55 during the majority of this year.
Apurva Sheth, who is the head of Market Perspective and Research at SAMCO securities, said earlier this year that current oil prices are lingering around the lowest levels in a year’s time for the commodity.
The huge setback is the result of a decrease in demand from China, which is the largest consumer of oil in the world. China’s manufacturing Purchasing Managers’ Index (PMI) dropped to a five-month low of 48.8 in May, which contributed to the decline in demand.
The combination of this factor, the indicators of economic weakness throughout the world, and the strength of the US currency have resulted in downward pressure on oil prices. Taking into account the aforementioned causes, it is possible that the negative mood would be reflected in the stocks of Indian oil and gas companies.
