Energy stocks light up amid tepid markets

In an otherwise lacklustre market, the Nifty Energy index spiked 2.51% and was trading at 14,072.95. Reliance Industries, Powergrid and ONGC were the major contributors to the index gains. Reliance was trading at Rs. 914.90 per share, up by 4.64%; Powergrid was at Rs. 213.20 per share, up 4.05%, while ONGC was Rs. 174.00 per share, up 1.64% on Wednesday.

Other stocks including Bharat Petroleum Corporation was trading at Rs. 517.30 per share up by 0.86%; Tata Power was at Rs. 81.75 per share, up by 0.18%, NTPC was trading at Rs. 176.10, up by 0.11%. While GAIL, IOC and HPCL were trading in the negative territory, post lunch hours.

The gains can be attributed to the government's thrust on energy self-sufficiency as well as the proposed foreign investments that are being made in the sector. Also, over the past few years, the international energy market has experienced intense price volatility. Crude oil prices have remain below US$50 helping the oil and gas companies in maintaining steady margins. All this has brought back investor's attention to the energy stocks.