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Why ONGC, Oil India Remain ICICI Securities' Tactical 'Buy' While Peers Struggle — Details Inside

ICICI Securities has kept its ratings unchanged across the oil and gas basket for now, but highlights that tactical strength lies firmly with ONGC and Oil India in the near term.

Why ONGC, Oil India Remain ICICI Securities' Tactical 'Buy' While Peers Struggle —  Details Inside
ICICI Securities believes the recent correction across its oil and gas coverage universe has pushed valuations into a more comfortable zone, improving the longterm riskreward setup for the sector.
(Photo: iStock)
STOCKS IN THIS STORY
Oil India Ltd.
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Oil & Natural Gas Corporation Ltd.
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Mahanagar Gas Ltd.
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Indraprastha Gas Ltd.
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Reliance Industries Ltd.
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Bharat Petroleum Corporation Ltd.
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GAIL (India) Ltd.
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Hindustan Petroleum Corporation Ltd.
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Gujarat State Petronet Ltd.
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Gujarat Gas Ltd.
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Gulf Oil Lubricants India Ltd.
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Petronet LNG Ltd.
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NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

ICICI Securities believes the recent correction across its oil and gas coverage universe has pushed valuations into a more comfortable zone, improving the long‑term risk‑reward setup for the sector. According to the brokerage, key names such as oil marketing companies, city gas distributors (Mahanagar Gas Ltd. and Indraprastha Gas Ltd.) and Reliance Industries Ltd. continue to hold strong long‑term prospects.

However, in the current market environment, ONGC and Oil India have emerged as the standout tactical opportunities.

The brokerage notes that the $15/bbl+ swing in Brent crude prices is a direct and powerful earnings catalyst for both upstream companies. With their profitability closely linked to crude price movement, the sharp rise in brent significantly boosts near‑term earnings visibility for ONGC and Oil India, placing them at a clear advantage over other energy names.

ICICI Securities has kept its ratings unchanged across the oil and gas basket for now, but highlights that tactical strength lies firmly with ONGC and Oil India in the near term. The rest of the sector—OMCs, CGDs and refiners—may continue to face relative pressure until the broader environment stabilises. 

Click on the attachment to read the full report:

Icici Securities Oil Gas Sector Update.pdf
VIEW DOCUMENT

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