Oil and gas stock was in focus in this week

“Oil and Gas stocks are experiencing significant momentum! Mangalore Refinery and Petrochemicals emerged as the top performer on the NSE 500 index this week, while other companies like Oil India, HPCL, and BPCL also recorded substantial gains.
What’s driving this surge? Well, despite major geopolitical risks like the Red Sea crisis, Brent crude prices have surged by 7% this year. Moreover, several other factors are contributing to the bullish sentiment. Firstly, India continues to be one of the fastest-growing markets for fuel consumption. Additionally, infrastructure enhancements made by refiners prior to the onset of Covid-19 are beginning to yield positive results, especially as the global crude market stabilizes. The Indian government’s decision to refrain from raising fuel prices over the past year, despite a decline in international prices in 2023, has further buoyed investor confidence. Lastly, as electric vehicles (EVs) gain traction, the demand for oil is expected to persist.
It’s worth noting that according to Morgan Stanley, Indian refiners are currently in a ““multi-year re-rating and earnings upgrade cycle,”” indicating potential for further growth and improved financial performance in the foreseeable future.”