Adani Total Gas Surges 40% Since Iran War Began While Nifty Oil And Gas Index Loses 9%

One stock has completely bucked the trend in India's energy sector since the West Asia conflict broke out on 28 February. Adani Total Gas has climbed nearly 40% from ₹512 to ₹717.60 between 27 February 2026 and 03 June 2026, making it the standout performer in the Nifty Oil and Gas index during one of the most volatile stretches the sector has seen in years.

However, the Nifty Oil and Gas index is down roughly 9% over the same period.

Three factors reportedly drove the outperformance. Government policy secured the company's domestic gas supplies even as Middle East supply routes came under pressure. The company also pushed through multiple compressed natural gas price hikes for retail and industrial customers, directly improving per-unit revenue.

And broader Adani Group sentiment improved following the resolution of regulatory overhangs that had weighed on group stocks.

The Sector Split: Upstream Wins, Downstream Bleeds

The conflict has created a clear divide within the oil and gas universe. Companies directly exposed to crude oil production benefit from higher realisations. Companies that buy crude and sell refined products at regulated or market prices are being squeezed between rising input costs and limited ability to pass them on.

The numbers across the sector since 28 February reflect that split clearly:

Gainers:

• Adani Total Gas: Up 40%

• Chennai Petroleum Corporation: Up 23.7%

• Aegis Logistics: Up 10.5%

• Oil India: Up 1.5%

Under pressure:

• Bharat Petroleum Corporation: Down nearly 27%

• Hindustan Petroleum Corporation: Down 24%

• Indian Oil Corporation: Down 23.2%

• Mahanagar Gas, Petronet LNG, Indraprastha Gas: Down up to 16%

• Reliance Industries: Down 6%

• ONGC and GAIL: Down 3 to 4%

Also Read - Stock Market Update 4 June 2026: Sensex Sheds Over 200 Pts; Nifty 50 Below 23,350

How Analysts View The Sector

According to reports, upstream oil producers are among the companies expected to benefit in the current environment. Market participants have also been watching complex, export-oriented refiners with strong diesel yields, as diesel crack spreads have remained relatively firm following the reduction in Russian diesel supplies to Europe after 2022.

Reportedly, analysts said pure-play refiners could see strong revenue and earnings before interest, tax, depreciation and amortisation growth in the first half of FY27 if gross refining margins hold around $15 per barrel.

Source

Business Standard