Oil prices are on the rise in the global market; this puts Indian energy companies in focus. In addition to rising oil prices, another factor that puts the spotlight on the Indian energy stocks today, and the time to come is the centre's plans to increase ethanol-blending in India.
Ethanol Blending In Focus
Ethanol-blending is a process of creating sustainable, and relatively non-polluting fuel through the process of mixing ethanol with petrol to create a cleaner-burning fuel.
The main energy stocks, particularly the PSU oil stock, have reacted to this development in a relatively positive guise. The stocks of Indian Oil Corporation, Hindustan Petroleum, Bharat Petroleum and Oil and Natural Gas Corporation Ltd were trading in green in the early hours of the day's session.
The Union government is planning to increase the blending of 20 per cent ethanol in petrol from 2030.
In addition, the National Policy on Biofuels - 2018, as amended in 2022, inter-alia advanced the target of 20 per cent blending of ethanol in petrol to Ethanol Supply Year (ESY) 2025-26 from 2030.
Oil and Natural Gas Corporation Ltd
Reacting to this development, the ONGC shares after starting the day on a cautious note, zoomed to make major gains of 1.09 per cent or Rs 2.57.
This took the overall of the company shares to Rs 238.16 per share.
Bharat Petroleum Corporation Ltd
The shares of Bharat Petroleum Corporation Ltd or BPCL also expanded in the intraday trade on Friday, March 21.
The overall rise in value of the ONGC stocks rose to 0.54 per cent or Rs 1.47. The stock price surged to Rs 273.60 per piece.
Indian Oil Corporation Ltd
Indian Oil Corporation, another major publically-owned energy company also made significant gains in the intraday trade.
The company shares zoomed to Rs 130.66, thanks to a 1.12 per cent or Rs 1.45.
Hindustan Petroleum Corp Ltd
Hindustan Petroleum was a bit of an outlier, as the stocks of this company dipped in value.
The overall value took a minor hit of 0.28 per cent or Rs 0.95. This brought the value of HP shares to Rs 335.60 per piece.
