Nifty Energy closed at 36,834.35 on Thursday, gaining 695.85 points or 1.93 per cent, making it the top-performing sectoral index on a day when benchmark indices ended deep in the red. The Sensex fell 1.08 per cent to 76,034.42 and the Nifty 50 dropped 0.95 per cent to 23,639.15 amid escalating West Asia tensions following attacks on three vessels in the Strait of Hormuz on March 11.
Within the energy index, power generation stocks led gains. rose 7.89 per cent, gained 7.51 per cent, climbed 6.35 per cent, and NTPC added 2.91 per cent. BHEL and Tata Power also posted gains of 4.71 per cent and 4.20 per cent respectively. The advance-decline ratio within the index stood at 28-12 in favour of gainers.
The rally was driven by two converging factors. First, analysts expect stronger electricity demand as forecasters predict an early summer. Second, consumer data pointed to a rapid shift away from LPG toward electric cooking alternatives. Bigbasket’s chief buying officer Seshu Kumar Tirumala said induction cooktops recorded a 5x demand spike on March 10 and a 30x spike on March 11, with the rest of kitchen appliances growing within 10 per cent of normal levels.
The shift reflects the severity of India’s LPG supply crunch. According to a JM Financial note dated March 11, approximately 54 per cent of India’s LPG requirements — those transiting the Strait of Hormuz — are currently disrupted. Total LPG availability stands at only 56 per cent of demand. The government has diverted all domestic LPG production to the household segment and set up a panel to manage commercial LPG allocation.
Commercial kitchens, which hold only one to seven days of cylinder inventory, face near-term disruption. A Motilal Oswal note flagged risk to food delivery platforms Zomato and Swiggy, whose GOV growth had been accelerating through recent quarters, if restaurant operations are curtailed.
Brent crude was trading around $97 per barrel, up approximately 25 per cent month-to-date, while diesel cracks expanded sharply, rising 65 per cent in the same period.