Oil & Gas Stocks Tumble 2% as RIL Leads Market Selloff

### Oil & Gas Index Faces Significant Pressure

The Nifty Oil & Gas index experienced a sharp downturn, shedding over 2 per cent in Tuesday's intraday trading. This decline was primarily driven by significant losses in major constituents, including Reliance Industries, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation. The index hit its lowest point since December 30, 2023, falling 2.6 per cent to 11,891.05.

At 2:16 p.m., the index was trading 2.07 per cent lower, significantly underperforming the broader NSE Nifty 50 index, which saw a more modest 0.44 per cent decline.

### Reliance Industries Drags Heavily

Reliance Industries (RIL), the index's heavyweight, was the most significant drag, with its share price plummeting 5.18 per cent to ₹1,496.30. This marked the stock's worst intraday fall in eight months, reportedly following news that CLSA had removed it from its India model portfolio. RIL alone accounted for over 100 points of loss on the benchmark Nifty 50 index.
The stock's decline extended for a second consecutive session. It had previously touched a new high of ₹1,611.80 on Monday, fueled by expectations of benefiting from geopolitical tensions in Venezuela, but ultimately erased those gains.

### Laggards and Gainers

Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) also contributed to the index's slide, declining as much as 3.68 per cent and 3.64 per cent, respectively. These state-owned oil marketing companies faced selling pressure.

In contrast, Oil and Natural Gas Corporation (ONGC) provided some respite, with its share price rising 1.56 per cent to ₹241.80. ONGC's positive momentum stemmed from its entry into a joint venture with Mitsui O.S.K Lines of Japan. The company will subscribe to 0.2 million shares of two joint venture entities, Bharat Ethane and IFSC Private Limited, securing a 50 per cent stake.

Additionally, ONGC clarified to stock exchanges that a leak incident reported by its production contractor, Deep Industries, at Well Mori-5 in Andhra Pradesh resulted in no injuries or fatalities.

### Analyst Outlook

Market analysts noted that geopolitical tensions between the US and Venezuela, coupled with a warning by the US President regarding Russian oil, have pressured the Nifty Oil & Gas index, which is down 3 per cent this week. Technical indicators suggest immediate support levels around 11,750-11,690. Traders are advised to adopt a cautious approach and await price stabilization before initiating new positions, according to Vipin Kumar, assistant vice president at Globe Capital Markets.