Election Results 2024: Nifty Oil & Gas index cracks 13%; GAIL, Oil India, ONGC, HPCL share prices decline 15-25%, RIL 9%

Election Results 2024: Nifty Oil & Gas index declined more than 13% on Tuesday. State owned companies as GAIL, Oil India, ONGC, HPCL share prices declined 15-22% and were amongst the largest losers during the intraday trades. Reliance Industries share price also was down 9%.

Ujjval Jauhari
Updated4 Jun 2024, 12:20 PM IST
Nifty Oil & Gas index falls 9%:GAIL, Oil India, ONGC, HPCL share price decline 10-15%
Nifty Oil & Gas index falls 9%:GAIL, Oil India, ONGC, HPCL share price decline 10-15%

Election Results 2024: Nifty Oil & Gas index declined more than 14% on Tuesday. GAIL Ltd , Oil and Natural Gas Corporation (ONGC), Hindustan Petroleum Corporation and  Oil India limited , were among the prominent upstream oil and Gas producer saw its share price decline 15-25% in intraday trades. GAIL Ltd was the largest loser with 24.72% decline in share price.

Among other counters Bharat Petroleum Corporations Ltd, Petronet LNG, Mahanagar Gas Ltd, Indian Oil Corporation Ltd were also among the significant losers with their share prices declining 10-14.

Meanwhile the index heavyweights like the Reliance Industries share price also declined more than 8%

The City Gas distribution companies as Gujarat Gas Ltd, Indraprastha Gas Limited share price also declined more than 6%.

Also Read Crude oil prices drop nearly 8% in just 5 sessions to hit a 4-month low on worries over higher supply

The uncertainty around the Lok Sabha Election results led to the fall in the share prices. The policy continuity remains key for prospects of Government led undertakings. The fall in crude oil prices was also among reasons that led to the crack in upstream oil and Gas producer share prices

Also Read- Dividend Stocks: Coal India, ONGC, ITC, Power Grid among top 10 picks by Religare Broking

The ONGC , Oil India share prices saw deep cuts led by fall in the crude prices. Brent Crude prices that were at around $84 a barrel on 28th May have declined to close to $76 a barrel levels  now. Notably they have fallen from more that $90 a barrel levels that they scaled in April. The weakness in crude prices also is responsible for weakness in GAIL India, share prices. 

Also Read- General Elections 2024 Results: PSU stocks tumble as early trends show mixed results; BSE PSU down 8%

The lower crude oil price impacts investor sentiments on oil & Gas producers. Nevertheless for upstream oil and Gas producers the government adjusts the windfall tax according to crude prices Hence while rise in crude prices means windfall tax rises and hence the net realisations remain capped, with fall in crude prices government lowers the windfall tax and the net realizations are again cushioned. 

For Upstream producers, the rise in production and rising prices for domestically produced gas are crucial.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions

 

 

 

 

 

 

 

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First Published:4 Jun 2024, 12:20 PM IST
HomeMarketsStock MarketsElection Results 2024: Nifty Oil & Gas index cracks 13%; GAIL, Oil India, ONGC, HPCL share prices decline 15-25%, RIL 9%

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