Oil Stocks Outlook
Oil, gas shares seen weak on procurement uncertainty
This story was originally published at 19:58 IST on 8 August 2025
Register to read our real-time news.Informist, Friday, Aug. 8, 2025
NEW DELHI – Shares of oil and gas companies are expected to remain weak in the near term amid uncertainty over the procurement of crude oil, driven by the recently announced punitive US tariff on India for purchasing Russian petroleum, according to analysts. Shares of oil marketing companies will remain in focus next week after the Cabinet okayed compensation to be paid to them towards under-recoveries from sales of liquefied petroleum gas.
The Nifty Oil & Gas index closed largely flat Friday at 10,989.15 points. For the week, the sectoral index closed nearly a percentage point lower, slightly worse off than the benchmark Nifty 50, which fell 0.8%. Petronet LNG and Castrol India were the top laggards in the Nifty Oil & Gas index this week while Hindustan Petroleum Corp. rose 1.4%.
"We have a stop-loss at 10,840 points (for Nifty Oil & Gas). If it breaches this level, more bearishness is expected for the sector," a Mumbai-based technical analyst said. The resistance level is pegged at 11,200 points. Analysts will be closely tracking the movement of Reliance Industries, which remains a heavyweight in the sector.
The Union Cabinet late Friday approved INR 300 billion compensation for the three oil marketing companies--HPCL, Bharat Petroleum Corp., and Indian Oil Corp. This compensation will reduce the debt of HPCL and BPCL by INR 60 billion each, and that of Indian Oil by INR 103 billion, said Yogesh Patil, a research analyst tracking the sector at Dolat Capital. The move is also expected to improve the equity value of HPCL by INR 29 per share, BPCL by INR 14, and Indian Oil by INR 8 per share, according to Patil.
Crude oil prices recovered from the day's low to trade above $64 a barrel after declining for six sessions, according to Kotak Securities. Movement in oil prices could be dictated by Indian refiners possibly looking for alternative supplies after Trump imposed an additional 25% duty starting Aug. 27 on top of the existing 25% on Indian imports.
Oil & Natural Gas Corp. will report its June quarter earnings Tuesday. Its net profit is expected to slide nearly 12% to INR 78.80 billion while its revenue could fall over 12% to INR 309.80 billion, according to consensus estimates.
TOP HEADLINES
* Analyst Concall:HPCL to start crude residue upgrade unit at Vizag in few wks
* Earnings Outlook: Better marketing margins may lift BPCL's PAT on year
* US natural gas stocks rise 7 bcf in week ended Aug 1, says EIA
* Earnings Outlook:Oil India Q1 PAT seen dn on lower crude prices, flat output
* Oil India, IREL sign MoU to develop critical minerals
* Earnings Review: HPCL PAT jumps 12-fold on weak crude prices but misses view
* India slams US, says extra tariffs over Russian oil unfair, unreasonable
* Trump slaps extra 25% tariff on Indian goods for trade ties with Russia
* Won't relent on Russian oil, farm mkt access in US deal, says govt official
* Gujarat Gas Apr-Jun PAT falls 0.9% YoY as sales fall 13%
* Castrol India Apr-Jun PAT rises over 5% on year to INR 2.44 billion
* India gives sharp response to Trump's threat of significantly raising tariff
* Will hike tariff for buying Russian oil, Trump threatens India yet again
* HPCL in pact with Abu Dhabi Gas Liquefaction Co to procure LNG for 10 years
* US natural gas stocks rise 48 bcf in week ended Jul 25, says EIA
* Oil imports from Russia fell in July amid sanctions, tariff threats: Kpler
Following are the resistance and support levels for the stocks for next week as per calculations based on their prices on the National Stock Exchange:
| Company | Price | Week-on-week change in % | Resistance | Support |
| Bharat Petroleum Corp. | 319.45 | 0.50 | 329.10 | 303.80 |
| Hindustan Petroleum Corp. | 409.50 | 1.40 | 424.00 | 392.30 |
| Indian Oil Corp. | 139.91 | (-)0.80 | 143.10 | 137.70 |
| Oil & Natural Gas Corp. | 233.44 | (-)1.40 | 236.20 | 231.30 |
| Oil India | 432.40 | (-)0.40 | 439.20 | 426.50 |
| Reliance Industries | 1,367.80 | (-)1.90 | 1,408.90 | 1,344.50 |
| Nifty Oil & Gas | 10989.15 | (-)0.90 | 11136.00 | 10898.90 |
| Nifty 50 | 24363.30 | (-)0.80 | 24676.80 | 24180.80 |
| S&P BSE Sensex | 79857.79 | (-)0.90 | 80835.90 | 79286.80 |
End
US$1 = INR 87.66
Reported by Anand JC
Edited by Rajeev Pai
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
