Oil and Gas Sector

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.

DP World Ltd has picked up a 49% stake in Reliance Industries’ upcoming multimodal logistics park at Mappedu near Chennai, according to sources. The JV, Chennai Global Logistics Park Ltd, has appointed Ajay Moghe as CEO. The project is part of the Bharatmala Pariyojana initiative, with official announcements on the deal still awaited.

The Indian stock market rallied sharply with the BSE Sensex gaining 1,264 points and the Nifty 50 crossing 24,200, driven by easing geopolitical tensions, softer oil prices, and strong global cues. Broad-based buying and positive technical signals indicate continued short-term momentum.

Indian markets may remain volatile in the week ahead (09–13 March 2026) as geopolitical tensions in the Middle East push crude oil prices to multi-year highs and FII selling continues. Investors will track global inflation data and sectoral trends across oil, defence, coal, and liquor stocks.

Reliance Industries shares rebounded after a short-term correction as investors grew optimistic about improving diesel refining margins and potential catalysts such as a Jio IPO and telecom tariff hikes. However, cyclical refining margins and potential windfall taxes remain key risks to watch.

Indian equity markets ended higher with the Nifty 50 closing at 24,765.90 and the Sensex rising 899 points to 80,015.90. The rally was driven by easing geopolitical tensions involving Iran, strength in global markets, a rebound in the rupee, and strong buying interest in refinery stocks led by Reliance Industries.