On Wednesday, February 4, 2026, the Indian energy sector saw a significant upswing, with the BSE Oil & Gas index climbing more than 2% during intraday trading. This rally was largely fueled by impressive performances from upstream leaders Oil India and ONGC. Oil India shares jumped over 7%, reaching a fresh 52-week high of ₹524, while ONGC surged 5% to hit ₹270.
The positive momentum also spread to state-owned oil marketing companies, with Indian Oil Corporation (IOCL), Hindustan Petroleum (HPCL), and Bharat Petroleum (BPCL) each recording gains of approximately 3% during the session. Market analysts suggest this sectoral boost is a reaction to a recent spike in global crude prices and the optimistic outlook surrounding the newly announced India-U.S. trade agreement.
Global oil prices surged on Wednesday, February 4, 2026, after the U.S. Navy shot down an Iranian drone in the Arabian Sea and Iranian vessels harassed a U.S.-flagged tanker in the Strait of Hormuz. These incidents have reignited fears of a military escalation between Washington and Tehran, pushing Brent crude futures up 0.8% to $67.89 per barrel and U.S. West Texas Intermediate (WTI) up 1.0% to $63.84.
This latest spike continues a broader upward trend in energy markets; since January 7, 2026, crude prices have climbed more than 13%, rising from approximately $60 to nearly $68 per barrel. For Indian energy giants like ONGC and Oil India, this sustained price appreciation serves as a major tailwind. As upstream companies, their profit margins are directly tied to global crude realizations, leading to the recent 5% to 7% surge in their stock prices as investors anticipate significantly higher earnings and improved cash flows.
