The Indian oil and gas industry's market size is 37.12 billion cubic meters as of 2024, and it is projected to rise to 49.12 billion cubic meters by 2029. This growth in the oil & gas sector is because of rising energy demands. Amidst this rise, the top oil and gas stocks in India are also witnessing a surge.

 

This offers investors an opportunity to trade in stocks that yield high returns. This is why investors need to know the best oil and gas stocks in India.

Overview of the Oil and Gas Sector in India

Oil and Gas industry plays an important part in India's economic growth. The sector provides a large share of the country's energy needs. Aside from being the world's 3rd-largest consumer, India has a constant need for oil and gas.

Apart from being the third largest oil consumer, India has an unending demand for its products thus making it a more attractive market for investments. Some of the major oil-producing states of India include Assam, Gujarat and Rajasthan which jointly account for a large proportion.

Given the growing demand, the government has also addressed the sector's development. All this combined exposes some of the best oil and gas stocks in India to great returns.

 

Best Oil and Gas Stocks in India 2024 as per Analyst Rating

 

Here are some of the top oil and gas stocks in India that you can invest in 2024:

Oil & Gas Stock Lists	Market Cap	ROE (%)	P/E Ratio
Reliance Industries Ltd	₹19.75LCr	9.05	28.35
Oil and Natural Gas Corporation Ltd	₹3.42LCr	15.92	6.94
Indian Oil Corporation Ltd	₹2.36LCr	22.42	5.50
Bharat Petroleum Corporation Ltd	₹1.33LCr	41.37	4.89
Hindustan Petroleum Corp Ltd	₹73.15KCr	-27.03	4.58

 

Top Oil & Gas Stocks in India in 2024 as per Market Capital

Here is a list of the top oil and gas stocks in India that play a significant role in India’s energy sector, and you must closely watch:

• Reliance Industries Limited
• Adani Enterprises
• Oil & Natural Gas Corporation Limited
• Indian Oil Corporation Limited
• GAIL (India) Limited

Overview of Best Oil & Gas Stocks in India

Before investing in oil and gas stocks, you must get an insight into global energy dynamics, economic stability, and the latest advancements. Here is a brief overview of the top oil and gas sector stocks:

Reliance Industries Limited

Reliance Industries Limited has operations in various sectors and holds a considerable position in the natural gas sector. The company operates one of the most efficient natural gas stock plants in the world and has significant interests in offshore and downstream natural gas. Reliance’s natural gas business involves exploration, production, marketing and sales.

GAIL (India) Limited

GAIL (India) Limited is a state-owned company that has an important role in India’s best natural gas stock to buy. This company deals with the transportation, processing, and marketing of natural gas through a huge pipeline system throughout the country. GAIL operates multiple LNG import terminals and holds a significant market share in the city gas distribution industry.

ONGC

ONGC is the largest research and production company in India with an emphasis on the premier natural gas investment. ONGC is engaged in the exploration, production, and development of hydrocarbons in India and other parts of the world. It has large reserves of natural gas and operates several gas fields throughout the country. 

Adani Total Gas Limited

Adani Total Gas Limited is a joint venture between Adani Group of India and Total Energies of France, catering to the city gas distribution business. The company has been continuously involved in the government’s endeavor to expand the natural gas distribution network across various geographical locations in the country.

Indian Oil Corporation Limited

Based in New Delhi, Indian Oil Corporation Limited (IOCL) is involved in the production of natural gas and oil, processing of crude oil, marketing of petroleum products, and natural gas and pipeline transportation. It has 5 million metric tonnes per annum of refining capacity and serves over 34,000 outlets across the country.

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Factors You Must Before Investing in Oil & Gas Stocks in India

To make an investment that yields high returns, consider these factors before investing in the oil and gas sector stocks in India:

• Regulation: The policies and regulations in place need to be studied and analyzed since the Indian government has a large influence on the industry. They also have implications for the profitability of the industry or the company that investors may wish to invest in.
  
  
• Prices: Another crucial consideration is the price of oil and gas. These factors greatly affect the performance of the oil and gas stocks. Thus, the prices should be watched to make a reasonable decision in the given situation.
  
  
• Performance of the company: When considering investing in the stock of a particular company, it is wise to check and evaluate its performance. You should learn about the company's financial health, management, how the company functions, and past performance.
  
  
• Competition: Due to the high level of competition in the top oil and gas stocks in India, it is important to monitor competition. This assists in decision-making and identifying the appropriate oil companies’ stocks to invest in.

Conclusion

Global energy systems are experiencing fast shifts, and so are oil and gas stocks. This surge offers both new and experienced investors the opportunity to benefit from it. However, some risks must be researched.

To invest in the oil and gas stocks in India, you are required to have a Demat and trading account. Open a free online demat account with Almondz Trade to simplify your investment process. Besides stocks, you can also trade bonds, commodities, IPOs, options, and more.

Disclaimer: This blog is posted solely for educational purposes. The securities mentioned are examples and not recommendations. It is based on various secondary sources from the internet and is subject to change. Kindly consult an expert before making any related decisions.