Nifty Oil -; Gas index trade higher amid volatile trade; ONGC, Oil India outperform

17 Jan 2022 , 01:12 PM

Nifty Oil & Gas index traded higher on Monday amid volatile trade. ONGC, Oil India and Castrol India led the gains while Hindustan Petroleum, BPCL and Reliance also outperformed. Gas stocks were under pressure.

 
The benchmark indices opened on a muted note today tracking mixed sentiments of Asian markets. Back home, all eyes were on earnings season. Sensex holds gains, up nearly 100 points; Nifty tests 18,300.
 
At around 1.12 pm, BSE Sensex was trading at 61,293.09 up 70.06 points or 0.11% and Nifty50 at 18,298.35 up 42.60 points or 0.23%. 

Nifty Oil & Gas was trading at 7,962.65 up 60.60 points or 0.77%. 
 
The performance comes amid higher international oil prices with Brent futures touching their highest in more than three years, as investors bet supply will remain tight amid restrained output by major producers with global demand unperturbed by the Omicron coronavirus variant.

ONGC rose 3.2% at Rs166.20 per piece to lift the performance of the sector. Oil India surged nearly 3% at Rs225.25 per piece.
 
State-owned Oil India Ltd has exited from a US shale oil venture, selling its 20% stake to its venture partner for USD 25 million — the second exit of an Indian firm from the US shale business in two months.

Castrol India gained over 2% at Rs127.85 per piece to outperform. Hindustan Petroleum and BPCL were also around 1% higher while Reliace rose over 0.8% to boost the sector. 

IOC (up 0.45%) also made steady gains. Energy major Indian Oil Corporation Ltd plans to invest Rs7,000cr in new city gas distribution (CGD) projects. On Sunday, the state-run energy company announced that it has secured nearly 33% of the demand potential in the recently concluded 11th round of CGD bidding by Petroleum & Natural Gas Regulatory Board (PNGRB).
 
Gas companies Indraprashtha Gas (down 1.4%), Mahanagar Gas (down 0.76%), Gujarast Gas (down 0.7%), Petronet (down 0.6%), Adani Total Gas (down 0.6%) and GAIL (down 0.24%) awere under pressure.