Indian energy equities defied higher input costs on Thursday, posting broad gains as investors priced in the potential for improved refining margins amid geopolitical uncertainty.
The Nifty Oil & Gas index rose nearly 1%, led by strong performances from major refiners and gas distributors.
Bharat Petroleum, GAIL, and Hindustan Petroleum were among the standout performers, while Mahanagar Gas emerged as the top gainer within the index.
The rally suggests that market participants are betting on the ability of integrated energy companies to pass through higher crude costs to consumers, or that the disruption is being viewed as a catalyst for inventory valuation gains.
The move comes against a backdrop of sharply elevated crude oil prices, driven by the ongoing US-Iran conflict.
Bloomberg reports that crude has continued to climb as the standoff persists, with fresh US military options raising the risk of renewed combat.