Oil and Gas Sector

Adani Total Gas, IGL, and MGL shares rallied sharply after another round of CNG price hikes across India. Rising global energy costs and improving margin expectations boosted investor sentiment in city gas stocks.

GAIL shares jumped over 6% intraday after the company announced its Q4FY26 results. While revenue remained stable, profitability declined due to weak petrochemical margins, higher gas costs, and forex-related pressures. However, strong gas transmission earnings and positive FY27 volume guidance kept investor sentiment upbeat.

Indian equity markets ended higher on May 22, 2026, supported by easing geopolitical tensions, declining crude oil prices, and a sharp recovery in the rupee. Banking and financial stocks led the rally, while Pharma, IT, and Media sectors remained under pressure amid selective profit booking and earnings reactions.

MTAR Technologies stock surged nearly 6% to hit a fresh all-time high after the company announced a ₹467 crore international order win. The company expects its FY27 order book to reach ₹5,000 crore amid strong momentum in nuclear, aerospace, and oil & gas businesses.

India’s massive dependence on imported crude oil has pushed the government to accelerate its ethanol mission with a nationwide E100 fuel rollout. From reducing foreign exchange outflows to supporting farmers and strengthening energy security, the plan aims to transform ethanol from a blending component into a primary transport fuel. But the success of the initiative depends on solving India’s flex-fuel vehicle and fuel infrastructure deadlock.

The Maharashtra Government has reduced VAT on Aviation Turbine Fuel (ATF) from 18% to 7% until November 14, providing major relief to airlines such as InterGlobe Aviation and Air India as jet fuel prices surge due to the West Asia conflict.

Hindustan Petroleum Corporation Limited (HPCL) reported a strong Q4 FY26 performance with a 46% jump in net profit to ₹4,902 crore. Improved refining margins, ₹3,300 crore LPG compensation, and robust domestic fuel demand boosted earnings. The company also announced a final dividend of ₹19.25 per share and posted record annual profits for FY26.

The global energy market is entering a more dangerous phase as the oil crisis evolves into a physical fuel supply crunch. Saudi Aramco has warned that gasoline and jet fuel inventories could reach critically low levels if disruptions in the Strait of Hormuz continue, raising risks of inflation, transportation disruption, and economic stress for oil-importing nations including India.

ONGC shares rallied after the government announced major cuts in royalty rates for crude oil and natural gas production. The move is expected to improve profitability, cash flows, dividend sustainability, and exploration economics for upstream energy companies. Analysts believe the policy shift could trigger a long-term rerating in ONGC stock if crude prices remain supportive.

ONGC and Oil India stocks gained momentum after a new oil discovery in Libya and firm global crude prices. Additionally, ONGC announced a joint venture with MRPL and OPaL to strengthen its petrochemical business, aiming for cost optimization and improved profitability.