Why are oil and gas stocks in focus today?

Oil and gas stocks, particularly OMCs and exploration companies like ONGC, are in focus because the government has significantly reduced the windfall tax on domestically produced crude oil and export duties on petrol and diesel. This move is expected to improve their profitability.

What is the significance of Brent crude falling below $105?

For India, which imports over 85% of its oil needs, a fall in global crude prices is a major positive. It helps reduce the country's import bill, eases inflationary pressures, and lowers input costs for several industries, including paints, chemicals, and aviation.

What was the news regarding PSU bank mergers?

The Ministry of Finance has officially denied recent media reports that claimed the government was considering a merger of nine public sector banks. This clarification removes uncertainty that was building up around the banking sector.

Indian Market Pre-Open Report: Key Things To Watch Today | 17 September 2026

Indian markets are poised for a watchful start on Thursday, following a recovery in the previous session that saw the Nifty close above the 23,200 mark. Overnight, the government announced a significant reduction in the windfall tax on domestically produced crude oil, petrol, and diesel, a move set to buoy sentiment for oil and gas stocks. A concurrent drop in global Brent crude prices below $105 a barrel further supports the positive outlook for the import-dependent economy.

Market Setup

The domestic market showed signs of a rebound in Wednesday's session, with benchmark indices recovering from a recent sell-off. The Reserve Bank of India (RBI) continues its liquidity management operations, announcing it will conduct an Overnight Variable Rate Reverse Repo (VRRR) auction today, indicating a focus on absorbing excess funds from the banking system.

Global Market Snapshot

Asian markets opened on a mixed to positive note on Thursday morning. Japan's Nikkei index was trading higher by 1.0%, with gains led by the pharmaceutical and machinery sectors. Data for US and European market closures was unavailable at the time of this report.

Commodities and Currency

Crude Oil: Brent crude prices fell below $105 per barrel after reports of Saudi Arabia moving to restore a key pipeline, easing supply concerns. This development is a positive for Indian refiners who have faced a 40% surge in crude costs due to regional disruptions.
Gold and Silver: Bullion prices saw a sharp increase as traders turned to the safe-haven asset. Gold prices gained 1% on bargain buying. On the MCX, Silver futures jumped by ₹3,300, supported by the dip in crude oil rates.

Stocks In Focus Today

Oil & Gas Sector (Reliance, ONGC, Oil India): These stocks will be in the spotlight after the government revised the windfall tax. The export duty on petrol was cut to ₹0.5 per litre, and levies on diesel and ATF were also trimmed for the next fortnight.
GR Infraprojects: The company announced the termination of a Battery Energy Storage System (BESS) contract with NTPC, citing force majeure and war risk clauses. The stock could see a negative reaction to this development.
Fortis Healthcare: The company has signed a 29-year agreement for a new super-speciality hospital with over 400 beds in Delhi. This expansion move is a significant long-term positive for the healthcare provider.
Infosys: The IT major has expanded its Indore development centre, adding a new software development block spanning 3.3 lakh square feet. The move reaffirms its commitment to tier-2 city expansion and talent development.
ITC: The FMCG conglomerate has reportedly raised cigarette prices. This action is seen as a way to pass on higher taxes to consumers and could support its margin profile.
PSU Banks (SBI, PNB, Bank of Baroda): The Ministry of Finance has dismissed reports suggesting a merger of nine public sector banks. This clarification provides certainty and may quell market speculation around the sector.
NSE: The National Stock Exchange allotted shares worth $703 million (approximately ₹5,800 crore) to anchor investors ahead of its IPO. LIC emerged as the top investor, subscribing to shares worth ₹450 crore, with FPIs receiving 43% of the allocation.

Sector Watch

Oil Marketing and Exploration: The sector is expected to see a positive reaction following the government's decision to cut windfall taxes on petroleum products and domestic crude. The simultaneous fall in global crude prices provides an additional tailwind.
Healthcare: Fortis Healthcare's announcement of a new 400+ bed hospital in Delhi puts the hospital sector in focus, highlighting ongoing capacity expansion plans across the industry.
IT Services: Infosys's expansion in Indore underscores the continued growth and hiring trends within the IT services industry, particularly its focus on diversifying its talent base outside major metro cities.
FMCG: ITC's move to increase cigarette prices will be watched closely by investors, with potential implications for volumes and revenue growth in its core business segment.

Economic Calendar

RBI Overnight Variable Rate Reverse Repo (VRRR) auction.

Today's Watchlist

Reliance Industries: Positive trigger from the reduction in windfall tax on petroleum products.
ONGC / Oil India: Expected to benefit directly from the cut in windfall tax on domestically produced crude oil.
Fortis Healthcare: In focus after announcing a major, long-term expansion with a new 400+ bed hospital in Delhi.
GR Infraprojects: May face pressure after terminating its BESS contract with NTPC.
Infosys: Expansion of its Indore facility signals continued growth and investment in non-metro talent hubs.
ITC: Stock to be watched following reports of a hike in cigarette prices.

Frequently Asked Questions

Why are oil and gas stocks in focus today? Oil and gas stocks, particularly OMCs and exploration companies like ONGC, are in focus because the government has significantly reduced the windfall tax on domestically produced crude oil and export duties on petrol and diesel. This move is expected to improve their profitability.
What is the significance of Brent crude falling below $105? For India, which imports over 85% of its oil needs, a fall in global crude prices is a major positive. It helps reduce the country's import bill, eases inflationary pressures, and lowers input costs for several industries, including paints, chemicals, and aviation.
What was the news regarding PSU bank mergers? The Ministry of Finance has officially denied recent media reports that claimed the government was considering a merger of nine public sector banks. This clarification removes uncertainty that was building up around the banking sector.