ONGC, Oil India Share Price Surge on Rising Global Tensions; HPCL, BPCL Dip| Stock Market Today

The Indian stock market saw notable movements in oil sector stocks on February 19, as geopolitical tensions pushed global crude prices higher. Shares of major oil producers saw strong gains, while oil marketing companies slipped in trade, reflecting a clear divergence within the sector.

Market Performance Overview

• ONGC shares rose 4.5%, trading at Rs 276.45.
• Oil India shares surged over 7%, reaching Rs 485.8.
• HPCL shares fell more than 4%, trading at Rs 437.2.
• BPCL shares dropped over 3%.
• IOC shares fell over 2%.

The performance indicates a sector split—oil producers benefiting from rising crude prices, while marketing companies face selling pressure.

Why Oil Prices Are Rising?

The jump in crude prices is closely tied to growing US-Iran tensions. Global markets are now watching developments in the Middle East, especially around key oil supply routes:

• Iran is fortifying its nuclear facilities under concrete and earth bunkers.
• The US has deployed fighter jets and support aircraft to the region.
• Disruptions in the Persian Gulf, especially near the Strait of Hormuz, are causing concerns about global oil flows.

Brent crude futures rose by $0.71, up 1.01%, to settle at $71.06 a barrel, while U.S. West Texas Intermediate (WTI) crude increased $0.69, or 1.06%, reaching $65.88 a barrel.

Company Details: ONGC and Oil India

Oil & Natural Gas Corporation (ONGC)

ONGC, India’s flagship oil producer, continues to benefit from rising crude prices. The recent surge in share price reflects strong investor sentiment around global oil supply risks and strategic positioning in upstream oil production.

Oil India Limited

Oil India, another major upstream player, outperformed with a 7% jump. Investors are closely tracking its exposure to international crude pricing and production stability amid geopolitical uncertainty.

Oil Marketing Companies Lag Behind

While producers climbed, HPCL, BPCL, and IOC witnessed declines:

• HPCL down 4%, BPCL down 3%, IOC down 2%.
• These companies are more sensitive to domestic pricing and retail margins than crude price fluctuations.
• The contrast underscores the sector dynamics: upstream gains versus downstream margin pressures.

Summary

February 19 marked a clear day of sector divergence in the oil space:

• Upstream players ONGC and Oil India surged on rising crude prices and geopolitical concerns.
• Downstream players HPCL, BPCL, and IOC slipped due to margin sensitivities.
• Global oil markets reacted strongly to US-Iran tensions, pushing Brent and WTI higher.

Investors tracking oil sector trends now face a split scenario: upstream stocks rising on supply concerns, downstream companies lagging due to domestic operational pressures.

This movement underlines how geopolitical developments directly influence oil sector share prices, making upstream producers the clear beneficiaries in the current scenario.

Source: Moneycontrol