Equity benchmarks plunged on Monday as escalating tensions in the Middle East dampened investor sentiment and triggered broad-based selling across sectors.
Despite the widespread weakness, select oil upstream stocks emerged as notable gainers, supported by a sharp rise in global crude oil prices.
Shares of ONGC and Oil India advanced in early deals, reflecting renewed investor interest in energy producers.
The rally in these counters comes as in the Middle East, raising concerns over potential supply disruptions. Upstream companies such as ONGC and Oil India, which are engaged in the exploration and production of crude oil, typically benefit from higher oil prices. An increase in global crude rates allows them to realise better prices for their output, directly supporting revenue growth and profit margins, provided production costs remain relatively stable.
In early trade, both stocks saw a sharp uptick before trimming gains. ONGC shares zoomed 5 per cent to a 52-week high of ₹293 from the previous close of ₹279.70 before paring some gains to trade flat at ₹278.90 as at 10.30 am. Oil India also rose 4 per cent to 505. At 10.36 am, it traded at ₹479.60, from the previous close of ₹483.90.