Updated 10 March 2026 at 11:53 IST
Oil & Gas Stocks Slide as Crude Rally Unwinds; BPCL Drops 6%, Nifty Oil & Gas Index Falls 2.6%
Energy stocks came under pressure as the Nifty Oil & Gas Index fell 2.6% to 11,482, with BPCL dropping over 6%, HPCL falling 5%, and IOC declining 4.4%. Profit booking intensified after crude cooled sharply from $119 to around $89 per barrel.
Shares of oil and gas companies came under sharp selling pressure on Tuesday as the geopolitical risk into energy stocks over the past week began to unwind following the sharp correction in crude oil prices.
The Nifty Oil & Gas Index emerged as the worst-performing sectoral index, falling 2.59% or nearly 305 points to 11,482.30 around 10:42 AM IST, even as the broader market showed signs of recovery.
The weakness was visible across the energy value chain, from upstream explorers to refiners, gas importers, and city gas distributors, as investors rushed to lock in profits after a highly volatile session on Monday when crude briefly surged above $120 per barrel.
Refiners and OMCs Lead the Selloff
The steepest declines were seen in downstream oil marketing companies (OMCs), where investors engaged in aggressive profit booking.
- Bharat Petroleum Corporation Limited plunged 6.12% to ₹331.15, making it the top loser in the Nifty 50 index and slipping below its 50-day moving average.
- Hindustan Petroleum Corporation Limited dropped 5.04% to ₹384.55, retreating from multi-month highs.
- Indian Oil Corporation fell 4.42% to ₹161.22, with traders noting a spike in volumes as institutional investors trimmed exposure.
The selloff comes a day after these stocks witnessed extreme volatility amid fears that crude prices above $120 per barrel could trigger under-recoveries, losses incurred when companies sell fuel domestically at capped prices despite higher import costs.
However, even though global benchmark Brent Crude has since cooled sharply to around $89 per barrel, the decline in OMC stocks shows a reset in earnings expectations.
Brokerages have warned that marketing margins may remain compressed compared to the unusually high profitability seen in FY25, thus prompting investors to take profits.
Reliance Industries Faces Margin Concerns
Shares of Reliance Industries were also under pressure, trading 1.37% lower at ₹1,424. For Reliance, lower crude prices create a mixed impact. While falling oil reduces feedstock costs for its massive refining complex in Jamnagar, it can also compress Gross Refining Margins (GRMs) when the market moves out of a supply panic.
GRMs typically narrow when the spread between crude oil and refined products such as petrol and diesel, known as product cracks, declines during periods of stable supply.
Gas and LNG Companies Also Decline
The selling pressure extended to the gas distribution and LNG import segment.
- GAIL fell 2.15% to ₹212.80.
- Petronet LNG dropped 4.08% to ₹278.55, tracking expectations of softer global LNG prices.
Easing geopolitical tensions could cool global gas prices and reduce the urgency around securing spot LNG cargoes.
City gas distribution companies also saw declines as the broader energy theme lost momentum.
- Adani Total Gas declined 3.06% to ₹467.90.
- Indraprastha Gas Limited slipped 1.60%.
- Mahanagar Gas Limited eased 0.67%.
Published By : Shourya Jha
Published On: 10 March 2026 at 11:53 IST