India energy stocks mixed as oil slides; OMCs gain after budget avoids excise duty hike

Mangalore Refinery and Petrochemicals

02/02/2026 07:49

Updates

** Shares of oil explorers Oil and Natural Gas Corp ONGC.NS and Oil India OILI.NS fall 1% and 5.1%, respectively, tracking fall in oil prices O/R

** Downstream firms like Indian Oil Corp IOC.NS and Hindustan Petroleum Corp HPCL.NS, which benefit from lower oil prices, up 1.2% and 3.5%, respectively.

** President Donald Trump over the weekend said Iran was "seriously talking" with Washington, signalling de-escalation with OPEC member after military strike risks drove oil prices to multi-month highs

** UBS says India's decision in the federal budget to avoid raising excise duty on retail fuel removes key near-term overhang for oil marketing companies (OMC) and is supportive of marketing margins

** Brokerage flags higher power sector capex and incentives for clean energy, carbon capture and storage as positives for broader energy value chain

** Nifty Energy .NIFTYENR index down 0.1% on Monday vs 0.3% rise in benchmark Nifty 50 .NSEI

(Reporting by Nandan Mandayam and Surbhi Misra in Bengaluru)

((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))