Oil and Gas PSU index surges over 3%, strongly rebounds after six months fall
These stocks have up-surged between five and seven percent viz Indian Oil Corporation (IOC) of 3 percent while Oil India had 2 percent.
Amid large volumes supported by a robust rebound in Oil and Natural Gas Corporation (ONGC), Hindustan Petroleum Corporation (HPCL), Gail (India), and Bharat Petroleum Corporation, the BSE Oil & Gas index jumped over 3 percent in Friday's intra-day session.
These stocks have up-surged between five and seven percent viz Indian Oil Corporation (IOC) of 3 percent while Oil India had 2 percent. But the last six months, the oil and gas index has outperformed the market by declining 18 percent, against a benchmark index drop of 9.5 percent.
Recently, the Indian Parliament passed the Oilfields (Regulation and Development) Bill, 2024 that provides policy stability to investors, decriminalises provisions and promotes ease of doing business.
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The Bill intends to reform the legal framework to meet the current needs and market conditions and to make the sector more attractive to investors so that exploration and production of oil and gas could be increased further and will play a key role in India’s quest for ensuring energy availability, accessibility, affordability and security for the citizens and fulfilling the Hon’ble Prime Minister’s vision of Viksit Bharat by 2047.
Read Also : HUDCO appoints two Non-Official Independent Directors on BoardFollowing the passage of a new law ensuring budgetary stability, oil and gas businesses will not be subject to new levies akin to windfall profits tax. Investors wishing to find and produce oil and gas seek financial security.
Often a deterrent are the increased levies meant to eliminate gains gained when prices are high without offsetting poor or no margins when rates are low, the research advised.
Read Also : IOCL Q4 Results: Net Profit stood at Rs 7,265 crore Margin beats estimates high at 7%