OMC Stocks See Gains, Up to 3.5% Rise Amid Cooling Crude Prices

Market Recap: Oil & Gas Stocks Surge on Crude Price Easing

Key Figures:

• Sensex: up 950 points at 75,164
• Nifty: gained 300 points or 1.3% to 23,300
• Nifty Oil & Gas index: rose 1.6%
• Nifty Energy index: gained 2%

Market Performance:

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In Friday's trade, shares of oil marketing companies (OMCs) and other oil & gas stocks advanced, rising up to 3.5%, driven by easing crude oil prices and a broader market rebound. The Sensex was up over 950 points at 75,164, while the Nifty gained 300 points or 1.3% to climb above 23,300. Market breadth remained strong, with 2,755 shares advancing against 848 declines.

Sectoral Performance:

The Nifty Oil & Gas index outperformed the broader rally, rising around 1.6%. The Nifty Energy index gained nearly 2%, reflecting strength across upstream, downstream, and gas-linked companies. OMC stocks led the gains, with Hindustan Petroleum Corporation (HPCL) shares rising over 3.4% and emerging as the top gainer in the oil & gas pack.

Company Performance:

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• Hindustan Petroleum Corporation (HPCL): rose over 3.4%
• Indian Oil Corporation (IOC): gained around 2.5%
• Bharat Petroleum Corporation (BPCL): advanced about 1%
• Reliance Industries: jumped over 3.2%
• Indraprastha Gas (IGL): rose over 1.6%
• GAIL: gained around 0.8%
• ONGC: saw modest gains
• Oil India: saw modest gains

Market Drivers:

The upmove in OMC stocks comes as crude oil prices cooled to around $105 per barrel, easing from recent highs near $119, after global efforts to stabilise supply routes and reduce disruptions linked to tensions in the Middle East. Lower crude prices typically support OMC margins, as they help reduce input costs, improving profitability outlook for refiners. The broader recovery in oil & gas stocks also reflects improving risk sentiment after Thursday's sharp market sell-off.

Sectoral Outlook:

The rally was broad-based, with gains also seen in metals, IT, banks, and infrastructure stocks, indicating a risk-on move across the market. Volatility cooled with India VIX easing about 3% today, but still remains elevated due to geopolitical developments. Investors are eyeing sustained cooling in crude oil prices for support to OMC stocks.