List of Oil Stocks In India: Which Stocks Fell And Which Survived The War?
It's a no-brainer that the escalating tensions between Israel and Iran have sent shockwaves across the global energy markets. The surging crude oil prices have been triggering volatility across sectors, including the ripple effects on oil and gas stocks in India, with companies facing rising input costs, shifting investor sentiment and fluctuating margins.
Let us deep dive and understand the impact of this war on oil share price and gas share price of major Indian companies which are oil producers, gas distributors or play other roles in the energy and industrial landscape.
Impact Of War On Oil Stocks In India
1. ONGC: India’s largest crude oil and natural gas producer ONGC (Oil and Natural Gas Corporation) has faced a mixed journey amidst the war. There have been periods when it has seen an uptrend by benefiting from rising crude oil prices, but then it has also faced volatility due to massive sell-offs in the Indian equity market. Overall from March 2nd (the first trading day after the war began) on 28th February) till March 15th, ONGC share price has suffered a 7% fall, with the negative investor sentiment and volatility in crude oil prices contributing to this1,2.
2. Oil India: Another Indian public sector company producing crude oil and natural gas that has faced volatility during the Israel-Iran war, is Oil India. Oil India share price has fallen over 4% overall from March 2nd to 15th3.
3. HPCL: HPCL (Hindustan Petroleum Corporation Limited) has seen a severe drop during this two week period. HPCL share price has fallen over 19% since the war began, being highly sensitive to the sudden spike in Brent crude which was seen in early March 20264.
4. Indian Oil: IOC (Indian Oil Corporation) too has seen its stock suffer a downfall amidst the war. Indian Oil share price has fallen nearly 17% from March 2nd to 15th,facing a continuous decline amidst surging global crude oil prices. This has led to increase in raw material costs, inventory losses and weaker refining margins5.
5. Reliance Industries: Mukesh Ambani-owned Reliance Industries has turned out to be a better performer amidst the war. Its diversified business model, including telecommunications and retail seem to have provided a hedge against the volatility affecting its Oil-to-Chemicals (O2C) segment. Reliance Industries share price has overall gone up around 2% in this two week period, despite facing periods of volatility6.
6. Kirloskar Oil Engines: For the unversed, Kirloskar Oil Engines primarily manufactures diesel engines and power generating sets. Battling the fears of rising input costs (raw materials) versus potential demand for backup power in case of energy supply disruptions, Kirloskar Oil Engines share price has seen an overall jump of over 4% amidst the war (from March 2nd to 15th)7.
Also Read: Israel-Iran War Impact: Top Oil Reserves Countries And India Market Reaction
Impact Of War On Gas Stocks In India
1. GAIL (India) and Mahanagar Gas: Both GAIL share price and Mahanagar share price have seen double-digit declines ( 11% and 13% respectively) amidst the war8,9. While Mahanagar Gas Ltd is a major natural gas distribution company, GAIL’s operations are more diverse, including exploration, production, processing, transmission, and marketing of natural gas. Higher oil prices squeezed margins for these gas distributors who have been serving retail and industrial customers.
2. Hindustan Oil Exploration: Hindustan Oil Exploration (HOE) had seen its share price initially surge nearly 20% in the first week of March amidst oil prices spiking. But that entire gain got wiped after a mid March crash in its prices, which is still continuing. Overall, Hindustan Oil Exploration share price has suffered a 7% fall in this two week period amidst the war10.
3. Adani Total Gas: After suffering a continuous fall in the first week of war, Adani Total Gas share price had seen a big jump of over 28% on March 11-12th thanks to favorable domestic gas policies. But then it saw a 14% drop in the last two trading sessions of March 13th and 16th, taking its overall gain to around 6% in this two week period since war began11.
4. Gujarat Gas: The Gujarat Gas price decline of 5.58% was relatively more contained during this specific two-week window compared to its peers in the city gas distribution space12.
Also Read: 5 Ways The Israel Iran War Could Impact Your Wallet In India
West Asia War And Its Impact on Indian Oil Stocks
- The Strait of Hormuz disruption has created direct uncertainty for Indian oil companies dependent on Gulf crude imports
- India's Strategic Petroleum Reserve of 53 lakh metric tonnes provides a near-term buffer, but prolonged conflict could pressure refining margins
- India's energy import diversification to 41 countries offers some cushion, but Gulf dependency for crude remains significant
Conclusion
The Israel-Iran conflict has certainly highlighted how deeply global geopolitics influences India’s oil and gas sector and the overall stock market too. Going ahead, the trajectory of oil and gas sector’s share prices and the duration of the conflict are expected to remain as the key factors shaping investor sentiment.
FAQs On List Of Oil Stocks In India
1. Why are oil and gas stocks in India falling during the Israel-Iran war?
Rising crude oil prices increase input costs for refiners and gas distributors, reducing margins and triggering stock price declines.
2. Which Indian oil company performed best during the war?
Reliance Industries performed relatively better, gaining around 2% due to its diversified business across telecom and retail.
3. Why did HPCL and IOC stocks fall sharply?
Both companies faced higher crude costs, inventory losses, and weaker refining margins, leading to significant stock declines.
4. How are gas companies like GAIL and Mahanagar Gas affected?
Higher oil prices squeezed margins, resulting in double-digit declines in their share prices during the war period.
References:
1. NSE, accessed from: https://www.nseindia.com/get-quote/equity/ONGC/Oil-&-Natural-Gas-Corporation-Limited
2. OilPrice, accessed from: https://oilprice.com/oil-price-charts/#Brent-Crude
3. NSE, accessed from: https://www.nseindia.com/get-quote/equity/OIL/Oil-India-Limited
4. NSE, accessed from: https://www.nseindia.com/get-quote/equity/HINDPETRO/Hindustan-Petroleum-Corporation-Limited
5. NSE, accessed from: https://www.nseindia.com/get-quote/equity/IOC/Indian-Oil-Corporation-Limited
6. NSE, accessed from: https://www.nseindia.com/get-quote/equity/RELIANCE/Reliance-Industries-Limited
7. NSE, accessed from: https://www.nseindia.com/get-quote/equity/KIRLOSENG/Kirloskar-Oil-Engines-Limited
8.NSE, accessed from: https://www.nseindia.com/get-quote/equity/GAIL/GAIL-(India)-Limited
9. NSE, accessed from: https://www.nseindia.com/get-quote/equity/MGL/Mahanagar-Gas-Limited
10. NSE, accessed from: https://www.nseindia.com/get-quote/equity/HINDOILEXP/Hindustan-Oil-Exploration-Company-Limited
11. NSE, accessed from: https://www.nseindia.com/get-quote/equity/ATGL/Adani-Total-Gas-Limited
12. NSE, accessed from: https://www.nseindia.com/get-quote/equity/GUJGASLTD/Gujarat-Gas-Limited
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