Oil India Shares Zoom 6%: Energy PSU Stocks Surge As New Government Lays Emphasis On Expanding Capabilities

Oil India Shares Zoom 6%: Energy PSU Stocks Surge As New Government Lays Emphasis On Expanding Capabilities

Indian Oil Corp. also surged by 1.80 per cent or Rs 2.98, growing to Rs 168.19. BPCL also surged to Rs 610.80 after rising by 1.36 per cent or Rs 8.20. Oil India gained majorly with a 6.41 per cent or Rs 38.90 jump, taking the total price to Rs 646.15.

Juviraj AnchilUpdated: Tuesday, June 11, 2024, 02:26 PM IST
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The Indian energy companies that recently reported stable results for Q4 are exhibiting a good performance in the stock markets as well.

This comes at the back of the new government swearing in. The incumbent Petroleum and Natural Gas Minister, Hardeep Singh Puri, has been retained as the minister for the ministry responsible for carbon energy.

Oil and Gas Stocks Surge

The minister, after taking charge, reiterated the government's intention of expanding the country's capabilities in the energy sector. He also underscored on the government's intention of investing in greener avenues of energy generation. In addition, Puri also ruled out the possibility of petrol and diesel prices being slashed. He, however, did entertain the possibility of that happening, if the price of crude dropped to below USD 70.

OMC's combined profit rose by 25 times on a YoY basis

OMC's combined profit rose by 25 times on a YoY basis | File

These developments appear to have given impetus to the stocks of state-owned oil and gas companies. An hour before closing for the day's trade, ONGC shares surged 5.58 per cent or 14.45, taking its price to Rs 273.60.

Indian Oil Corp. also surged by 1.80 per cent or Rs 2.98, growing to Rs 168.19. BPCL also surged to Rs 610.80 after rising by 1.36 per cent or Rs 8.20. Oil India gained majorly with a 6.41 per cent or Rs 38.90 jump, taking the total price to Rs 646.15.

The OPEC cartel's plans for spiking crude oil through artificial means, including cutting down production, do not appear to have yielded a lot of results.

Oil India gained majorly with a 6.41 per cent or Rs 38.90 jump, taking the total price to Rs 646.15.

Oil India gained majorly with a 6.41 per cent or Rs 38.90 jump, taking the total price to Rs 646.15. |

Global Crude Oil Prices

The price of Brent crude has consistently dropped; recently, the price dropped to below USD 80 a barrel. Recently, after touching the USD 80 mark, the price of crude oil dropped to 79.81 again.

In fact, it is the public-sector oil and gas undertakings that have been trading in green. This could be attributed to the growing importance of energy and the availability of resources. In times of economic growth, the need for fuel rises.

The Indian economy is the only major economy to progress at a steady pace, while major economies, along with China and major European economies, have struggled. This could result in a further rise in the price of these stocks.

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