Energy and oil and gas indices advanced 1.2% and 2%, respectively, on September 29, supported by oil marketing companies such as Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) after multiple brokerages said they see stable fuel prices and focus on improving market capitalisation as positives. Nifty public sector enterprises index also rose 1.3%, with BPCL, Oil India Ltd leading the gains.
Shares of oil marketing companies (OMCs) rose after multiple brokerages said government's clarity on pricing reform in crude oil and LPG under-recovery compensation as key positives.
Brokerages' comments come after Minister of Petroleum Hardeep Singh Puri interacted with investors and analysts on September 26 to address concerns weighing on valuations of state-owned energy companies.
At 1:45 pm on September 29, BPCL shares were trading 4.3% higher at Rs 440.4 apiece while those of BPCL and IOC were trading 3.8% and 2.6%, respectively.
HSBC reiterated "buy" on HPCL, BPCL, IOC and said the latest comments from the government provide comfort that the ministry is unlikely to materially intervene and should allow OMCs to make reasonable returns
JPMorgan and Macquarie said the minister's commitment to continue government support with payment of LPG under-recovering to OMCs should help their margins and growth outlook
In 2025 so far, BPCL stock rose 11% while HPCL and IOC rose 3.3% and 6.3%, respectively, compared with a 5.2% uptick in oil and gas index during the same period, exchange data shows
Multiple brokerages see clarity on pricing reform in crude oil and LPG under-recovery compensation as key positives.
Meanwhile, shares of OIL rose up to 3% on September 29 after the crude oil and natural gas producer reported occurrence of natural gas in Andaman shallow offshore block.
Preliminary analysis has confirmed presence of natural gas, said OIL.
With inputs from Reuters
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