Nifty Oil and Gas – Nifty Oil and Gas Index

Nifty Oil and Gas is a stock market index in India that tracks the performance of the top companies in the oil, natural gas and petroleum sectors listed on the National Stock Exchange (NSE). It includes companies involved in the exploration, production, refining and distribution of oil and gas.

The table below shows the Nifty oil and gas index based on the highest market capitalisation and 1-year return.

Introduction To Nifty Oil and Gas Stocks

Reliance Industries Ltd

The Market Cap of Reliance Industries Ltd is Rs. 1,985,700.07 crores. The stock’s monthly return is -3.38%. Its one-year return is 26.38%. The stock is 9.83% away from its 52-week high.

Reliance Industries Limited is a company based in India that is involved in various activities such as hydrocarbon exploration and production, petroleum refining, marketing, petrochemicals, advanced materials, composites, renewables (solar and hydrogen), retail and digital services. 

The company operates in segments including Oil to Chemicals (O2C), Oil and Gas, Retail and Digital Services. The O2C segment comprises refining, petrochemicals, fuel retailing, aviation fuel, bulk wholesale marketing, transportation fuels, polymers, polyesters and elastomers. Its assets in the O2C business include aromatics, gasification, multi-feed and gas crackers, downstream manufacturing facilities, logistics and supply-chain infrastructure.  

Oil and Natural Gas Corporation Ltd

The Market Cap of Oil and Natural Gas Corporation Ltd is Rs. 367,917.10 crores. The stock’s monthly return is -10.65%. Its one-year return is 58.21%. The stock is 18.13% away from its 52-week high.

Oil and Natural Gas Corporation Limited is an Indian company that specializes in the exploration, production, refining and marketing of crude oil and natural gas. The company operates in various business segments including Exploration and Production, as well as Refining and Marketing. 

Its activities involve exploring, developing and producing crude oil, natural gas and related products within India, as well as acquiring oil and gas assets internationally for exploration, development and production. 

Indian Oil Corporation Ltd

The Market Cap of Indian Oil Corporation Ltd is Rs. 253,292.65 crores. The stock’s monthly return is 0.20%. Its one-year return stands at 90.37%. The stock is currently 14.87% away from its 52-week high.

Indian Oil Corporation Limited is an oil company based in India that operates in various segments including Petroleum Products, Petrochemicals and Other Business Activities. The Other Business Activities segment encompasses gas, oil and gas exploration, explosives and cryogenic business, as well as windmill and solar power generation. 

The company is involved in the entire hydrocarbon value chain, from refining and pipeline transportation to marketing, exploration, production of crude oil and gas, petrochemicals, gas marketing, alternative energy sources and global downstream operations. 

Bharat Petroleum Corporation Ltd

The Market Cap of Bharat Petroleum Corporation Ltd is Rs. 160,042.06 crores. The stock’s monthly return is 2.55%. Its one-year return is 104.39%. The stock is 7.78% away from its 52-week high.

Bharat Petroleum Corporation Limited, an Indian company, is engaged in the production, refining and distribution of petroleum products. Its diverse business portfolio encompasses fuel services, Bharatgas, MAK Lubricants, refineries, gas operations, industrial and commercial solutions, international trade and proficiency testing services. 

Under its fuel services umbrella, the company offers various options like SmartFleet, Speed 97, UFill, PetroCard, SmartDrive and more. Bharatgas aims to provide comprehensive solutions and support for businesses seeking energy-related products, ensuring quality and reliability. The company delivers a range of high-quality products such as automotive engine oils, gear oils, transmission oils and speciality oils.  

Gail (India) Ltd

The Market Cap of Gail (India) Ltd is Rs. 157,917.03 crores. The stock’s monthly return is 1.90%. Its one-year return is 93.35%. The stock is 2.73% away from its 52-week high.

GAIL (India) Limited is an Indian company that specializes in processing and distributing natural gas. The company operates in different segments, including Transmission Services, Natural Gas Marketing, Petrochemicals, LPG And Liquid Hydrocarbons and Other services. 

The Transmission Services segment deals with natural gas and liquid petroleum gas (LPG), while the Other segment encompasses City Gas Distribution (CGD), GAIL Tel, exploration and production (E&P) and power generation. Along with sourcing and trading natural gas, the company is involved in producing LPG, liquid hydrocarbons and petrochemicals, as well as transmitting natural gas and LPG through its extensive pipeline network spanning approximately 14,500 kilometres.  

Hindustan Petroleum Corp Ltd

The Market Cap of Hindustan Petroleum Corp Ltd is Rs. 94,830.71 crores. The stock’s monthly return is 3.75%. Its one-year return is 144.72%. The stock is 10.14% away from its 52-week high.

Hindustan Petroleum Corporation Limited is a company involved in refining crude oil, marketing petroleum products, producing hydrocarbons, managing exploration and production blocks, generating power and operating a liquefied natural gas regasification terminal currently under construction. 

The company is divided into two segments: Downstream Petroleum, which focuses on refining and marketing petroleum products and other segments engaged in hydrocarbon exploration and production, as well as sugar and ethanol manufacturing. HP’s various businesses include refining, retail, LPG distribution, lubricants, direct sales, projects, pipeline operations, international trade, natural gas, renewables, petrochemicals and research and development. 

Oil India Ltd

The Market Cap of Oil India Ltd is Rs. 92,513.32 crores. The stock’s monthly return is -21.22%. Its one-year return is 174.85%. The stock is 42.52% away from its 52-week high.

Indian Oil Corporation Limited is an oil company based in India. The company is divided into segments, including Petroleum Products, Petrochemicals and Other Business Activities. The Other Business Activities segment encompasses various operations such as gas exploration, oil exploration, explosives, cryogenic business, as well as windmill and solar power generation. 

The company’s activities cover the entire spectrum of the hydrocarbon value chain, including refining, pipeline transportation, marketing, crude oil and gas exploration, petrochemicals, gas marketing, alternative energy sources and global downstream operations. It operates a wide network of fuel stations, storage terminals, depots, aviation fuel stations, LPG bottling plants and lube blending plants. 

Adani Total Gas Ltd

The Market Cap of Adani Total Gas Ltd is Rs. 86,494.56 crores. The stock’s monthly return is -7.44%. Its one-year return is 26.44%. The stock is currently 63.08% away from its 52-week high.

Adani Total Gas Limited is an India-based company that focuses on distributing natural gas in urban areas. The company develops networks to supply natural gas to industrial, commercial and residential customers, as well as compressed natural gas to the transportation sector. 

Operating in around 33 regions, including Gujarat, Haryana, Karnataka, Tamil Nadu, Odisha and Rajasthan, the company also operates an e-mobility business that installs electric vehicle charging infrastructure nationwide for various applications.  

Petronet LNG Ltd

The Market Cap of Petronet LNG Ltd is Rs. 51,704.36 crores. The stock’s monthly return is -6.24%. Its one-year return is 52.27%. The stock is 5.42% away from its 52-week high.

Petronet LNG Limited (PLL) is involved in the marketing of re-gasified liquefied natural gas (RLNG), focusing on importing and processing LNG. The company operates within the Natural Gas Business sector, with its natural gas primarily comprising methane, ethane, propane and butane. 

Its key terminals include the Dahej LNG terminal, Kochi LNG terminal and Solid Cargo Port. The Dahej LNG terminal, situated in Gujarat, has an original capacity of about five million metric tons per annum, while the Kochi LNG terminal in Kerala has a similar capacity. The Solid Cargo Port Terminal facilitates the import and export of bulk products like coal, steel and fertilizer. 

Gujarat Gas Ltd

The Market Cap of Gujarat Gas Ltd is Rs. 42,429.97 crores. The stock’s monthly return is -8.07%. Its one-year return is 43.37%. The stock is 13.19% away from its 52-week high.

Gujarat Gas Limited, an India-based company, operates in the natural gas sector in India. The company’s activities include distributing gas from sources to demand centres and end users. It specializes in city gas distribution, handling the sale, purchase, supply and transport of natural gas, CNG, LNG, LPG and other forms of gases through pipelines, trucks, trains, or other suitable means of transportation. 

Serving approximately 18.90 lakh households across its operational areas, the company holds 27 city gas distribution licenses covering 43 districts in six states and one Union territory, including Gujarat, Maharashtra, Rajasthan, Haryana, Punjab, Madhya Pradesh and Dadra & Nagar Haveli.

Indraprastha Gas Ltd

The Market Cap of Indraprastha Gas Ltd is Rs. 39,155.72 crores. The stock’s monthly return is 2.05%. Its one-year return is 20.02%. The stock is 2.90% away from its 52-week high.

Indraprastha Gas Limited (IGL) is an Indian company specializing in city gas distribution (CGD) services. The company primarily focuses on distributing natural gas to industrial and commercial clients. 

Through its extensive distribution network, IGL ensures a reliable and safe gas supply to residential, commercial and industrial customers. In the Delhi and National Capital Region (NCR), IGL supplies compressed natural gas (CNG) to the transportation sector and provides piped natural gas (PNG) to various consumers.  

Aegis Logistics Ltd

The Market Cap of Aegis Logistics Ltd is Rs. 26,833.95 crores. The stock’s monthly return is -6.43%. Over the past year, the stock has returned 123.36%. Currently, the stock is 32.02% away from its 52-week high.

Aegis Logistics Limited is a comprehensive logistics company specializing in oil, gas and chemical services. The company focuses on importing and distributing liquified petroleum gas (LPG), as well as offering storage and terminalling facilities for LPG and chemical products. 

It operates through two main segments: the Liquid Terminal Division, which manages the storage and terminalling of oil and chemical products and the Gas Terminal Division, which handles the import, storage and distribution of petroleum products like LPG and propane. Aegis also markets LPG in cylinders for domestic, commercial and industrial uses.  

Gujarat State Petronet Ltd

The Market Cap of Gujarat State Petronet Ltd is Rs 24,368.29 crores. The stock’s monthly return is -5.09%. Its one-year return is 48.30%. The stock is 11.33% away from its 52-week high.

Gujarat State Petronet Limited, an India-based company, operates in the transmission of natural gas through pipelines with open access from supply points to demand centres for end customer distribution. The company also focuses on City Gas Distribution and electricity generation through Windmills. 

It is involved in developing energy transportation infrastructure to connect natural gas sources, including LNG terminals, to markets. The company serves around 102 customers across various industries such as refineries, steel, fertilizer, petrochemicals, power, glass, textiles, chemicals and other miscellaneous sectors.

Castrol India Ltd

The Market Cap of Castrol India Ltd is Rs. 24,190.97 crores. The stock’s monthly return is -7.27%. Its one-year return is 71.10%. The stock is 20.62% away from its 52-week high.

Castrol India Limited is a lubricant company that specializes in manufacturing and promoting automotive and industrial lubricants and associated services. The company operates in two main geographical segments – India and international markets. They offer a wide variety of car engine oils and fluids, such as engine oils, axle lubricants, brake fluids, automatic transmission fluids and greases. 

Additionally, they also provide motorcycle engine oils and fluids, encompassing brake fluids, chain lubricants, fork oil, greases, bike point oils and gear oils. Castrol India Limited offers various brands like Castrol CRB, Castrol GTX, Castrol Activ, Castrol MAGNATEC and Castrol VECTON. The company caters to diverse industries including automotive manufacturing, mining, machinery and wind energy.  

Mahanagar Gas Ltd

The Market Cap of Mahanagar Gas Ltd is Rs. 18,917.92 crores. The stock’s monthly return is 6.01%. Its one-year return is 75.53%. The stock is currently 2.12% away from its 52-week high.

Mahanagar Gas Limited is an Indian company focused on distributing natural gas. The company distributes both compressed natural gas (CNG) and piped natural gas (PNG) in the Mumbai, Thane and Raigad districts of Maharashtra. Operating in the city gas distribution sector, it provides PNG for residential, commercial and industrial purposes. 

The residential PNG is commonly used for cooking and heating water, while it is also utilized by various institutions such as hospitals, hotels and restaurants. The company serves a range of industries, including metal, pharmaceuticals, food and beverages, printing, dyeing, oil mills, power generation and air conditioning by supplying PNG gas.  

What is the Nifty Oil and Gas Index?

The Nifty Oil and Gas Index is a stock market index that tracks the performance of major companies in India’s oil and gas sector. It serves as a benchmark for investors to evaluate the market movements of key firms in this industry.  

Comprising various companies engaged in the exploration, production and distribution of oil and gas, the index reflects the overall health and trends within the sector. Investors often use this index to gauge market sentiment and make informed decisions about their investments in energy-related stocks.

Nifty Oil and Gas Weightage

The table below shows the nifty oil and gas weightage.

Best Nifty Oil and Gas Stocks Based On 1M Return

The table below shows the best nifty oil and gas stocks based on 1-month return.

Nifty Oil and Gas Index Based On Dividend Yield

The table below shows the nifty oil and gas index based on dividend yield.

How is the Nifty Oil and Gas Index Value Calculated?

The Nifty Oil and Gas Index Value is determined by assessing the market capitalization of companies within the oil and gas sector. This involves using the free-float market capitalization methodology, which reflects only the shares available for trading in the market.  

The index is calculated by taking the total market capitalization of eligible stocks, adjusting for their free float and then indexing this value to a base period. This approach ensures that larger companies have a proportionately greater impact on the index’s performance, effectively representing the sector’s overall health.

How Stocks Are Selected for the Nifty Oil and Gas Index?

The selection process for the Nifty Oil and Gas Index involves evaluating companies based on specific criteria, including market capitalization, liquidity and overall financial health. This ensures that only the most viable and active companies are included in the index.  

Furthermore, the index is regularly reviewed and adjusted to reflect market changes, ensuring that it remains a relevant indicator of the oil and gas sector. This rigorous selection process aids investors in making informed decisions based on robust and up-to-date data.

History of the Nifty Oil and Gas

The Nifty Oil and Gas Index was introduced by the National Stock Exchange (NSE) on January 1, 2004. It was created to track the performance of leading companies in India’s oil, gas and petroleum sectors. The index includes major players like Reliance Industries, ONGC, Indian Oil Corporation and GAIL. 

Over the years, the Nifty Oil and Gas Index has become a key benchmark, reflecting the energy sector’s vital role in India’s economy, especially in the areas of exploration, production, refining and distribution of oil and natural gas.

Key Factors of Nifty Oil and Gas Index Performance

The factor to consider when evaluating the Nifty Oil and Gas Index performance is global crude oil prices. Fluctuations in oil prices significantly impact revenues, profitability and stock prices of companies in this sector.

1. Government Policies and Regulations: The oil and gas sector is heavily regulated, with government policies affecting pricing, subsidies and environmental guidelines. Favorable policies can boost profitability, while stricter regulations may increase costs and hurt stock performance.
2. Global Supply and Demand: Changes in global oil supply, driven by geopolitical events or production decisions by major oil-producing nations, can impact prices. Increased demand or supply disruptions tend to drive up oil prices, benefiting companies in the index.
3. Currency Exchange Rates: Oil and gas companies, especially those involved in international trade, are sensitive to exchange rate fluctuations. A weakening rupee can increase import costs, affecting profitability and performance within the index.
4. Technological Advancements: Technological improvements in oil extraction, refining and distribution can reduce costs and improve efficiency. Companies that adopt advanced technologies can improve profitability and enhance their stock performance in the index.
5. Environmental Concerns and Shift to Renewables: As environmental awareness grows, there is increasing pressure on oil and gas companies to transition to cleaner energy sources. Companies that fail to adapt may face long-term challenges, affecting their stock performance.

Benefits of Investing in the Nifty Oil and Gas Index

The primary benefit of investing in the Nifty Oil and Gas Index is gaining exposure to India’s largest energy companies, which play a critical role in the country’s economy, offering the potential for stable returns and long-term growth.

1. Strong Demand for Energy: India’s growing population and industrialization drive consistent demand for energy. Companies in the Nifty Oil and Gas Index benefit from this demand, offering investors potential long-term growth as energy needs continue to rise.
2. Dividend Income: Many companies in the oil and gas sector are well-established and offer regular dividend payments. Investors can enjoy steady income alongside capital appreciation, making the index attractive for income-seeking investors.
3. Diversified Energy Exposure: The index provides exposure to a range of energy companies, including those involved in exploration, refining and distribution. This diversification spreads risk and enhances investment stability across various segments of the energy industry.
4. Global Market Influence: Oil and gas companies in the index are impacted by global energy prices and supply trends. Positive shifts in international oil markets can lead to increased revenues, benefiting investors with exposure to these companies.
5. Hedge Against Inflation: Energy companies tend to perform well during inflationary periods as energy prices rise. Investing in the Nifty Oil and Gas Index can serve as a hedge, offering protection against inflation-driven market volatility.

Risks of Investing in the Nifty Oil and Gas Stocks

The main risk of investing in Nifty Oil and Gas stocks is the volatility of global crude oil prices. Fluctuations in oil prices, driven by supply-demand dynamics, can significantly impact company revenues and stock performance.

1. Regulatory and Policy Changes: The oil and gas sector is highly regulated. Changes in government policies, environmental regulations, or subsidies can increase operational costs, restrict business activities and negatively affect the profitability of companies in the index.
2. Global Supply Disruptions: Geopolitical tensions or natural disasters that disrupt the global supply of oil and gas can lead to price volatility. Sudden supply shortages or surpluses can affect revenues and stock prices of companies in the index.
3. Environmental and Climate Concerns: Rising environmental awareness and stricter climate change regulations put pressure on oil and gas companies to adopt cleaner energy practices. Failing to adapt could lead to reduced investor confidence and long-term declines in stock performance.
4. Currency Risk: Many oil and gas companies operate globally and are exposed to currency fluctuations. A stronger rupee against other currencies can reduce export revenues, while a weaker rupee increases import costs, affecting profit margins.
5. Technological Disruptions: Advances in renewable energy technology and shifts toward sustainable energy sources may reduce the demand for fossil fuels. Companies that rely heavily on traditional energy sources could face long-term challenges in adapting to these changes.

How To Invest in Nifty Oil and Gas Stocks?

Investing in Nifty oil and gas stocks involves researching companies in this sector, analyzing their financial performance and understanding market trends. Start by selecting potential stocks based on their fundamentals and growth potential. Utilize platforms like Alice Blue to execute trades and manage your portfolio effectively. It’s essential to monitor global oil prices and domestic policy changes that might affect the industry. 

What Are The Tax Implications Of Investing In Nifty Oil and Gas Index?

Investing in the Nifty Oil and Gas Index is subject to capital gains tax based on the holding period. For investments held less than a year, short-term capital gains (STCG) are taxed at 15%. For investments held over a year, long-term capital gains (LTCG) above ₹1 lakh are taxed at 10%. Additionally, dividends from companies within the index are taxable at the applicable income tax slab rates.

Future of Nifty Oil and Gas

The future of the Nifty Oil and Gas Index will be shaped by the global transition towards cleaner energy and the ongoing demand for traditional fossil fuels. While oil and gas will remain crucial for India’s energy needs in the near term, increasing investments in renewable energy and regulatory pressures may push companies to diversify. Adapting to technological advancements and environmental standards will be key to long-term growth and sustainability.

FAQs – Nifty Oil and Gas Index

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Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.