Best Petroleum Stocks to Buy: How to Invest in Them?

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Best Petroleum Stocks to Buy: How to Invest in Them?

Best Petroleum Stocks to Buy: An Overview

Oil and gas stocks in India play an important role in the development of the economy and are a popular investment option among investors. Investors who want exposure to petroleum stocks can invest in top oil and gas companies in India. Investing in natural gas stocks in India can give you good returns in the long run. In this article, we are going to learn about top oil and gas stocks in India, and things to keep in mind while investing in petroleum stocks and gas sector stocks

Best Petroleum Shares in India: Walkthrough

Petrol stocks are anticipated to rise in the short term as oil consumption in the world will rise over the next few years. Most gas stocks India are dividend-paying companies and investors can have passive and regular income by investing in these companies. Petrol stocks in India are listed in major stock exchanges such as NSE and BSE but you need to keep in mind that sometimes the price of some stocks may vary slightly in both exchanges. You can find the list of petrol stocks and oil sector stocks in the NIFTY Oil & Gas Index. However, do your research and analysis of the company's fundamentals before investing in any stocks. 

How to Invest in the Best Petroleum Companies in India?

Investing in oil and gas stocks in India can be possible when you open a Demat and trading account. With the help of a Demat account, you can place buy or sell orders. However, you must be above 18 years and provide the required documents such as identity proof, address proof, bank details, bank statement, PAN details, and income proof to process the KYC (Know your customer) verification. Once the KYC verification is done, you will be provided a unique client ID to access your Demat account. 

  • Investors should keep an eye on petroleum and gas prices. When petroleum and gas prices increase, their stock price will also increase. 
  • Long-term investors can prefer to invest in dividend-paying stocks. Make sure to check the dividend yield and financials of the stock. 
  • Analyze when you should invest in gas stocks in India because the gas sector stocks are more volatile due to demand and supply fluctuations. 
Stock NameShare Price52 week high52 week lowMarket Cap (Rs. cr)
Oil India188.45306.00167.8520,400.00
Deep Industries286.05322.00123.95915.36
Reliance Industries2,377.002,856.152,180.001,608,000.00
Jindal Drilling307.50332.20121.10891.32
Petronet LNG199.50243.55190.2529,920.00
Selan Explorations319.00346.95122.05484.88
Asian Energy72.00173.0070.05271.58
Deep Energy Resources133.00152.7536.40428.92
Gujarat Natural16.8025.009.20134.82
Aban Offshore51.8074.7036.00300.29
Continental Petroleums51.7557.2037.80-
Bharat Petroleum Corp Ltd.302.65470.00293.3565,410
GAIL (INDIA) LTD86.40115.6783.0058,100

(Share Price as of 12th October 2022)

Disclaimer: The securities quoted are exemplary and not recommendatory. Past performance is not indicative of future returns

Points to remember while investing in the best petroleum stocks in India 

  • Do not follow stock tips blindly while investing in any financial instrument because it might lead you to suffer huge losses. You should do your proper research and analysis of the stock such as financial statements, cash flow, and performance over the last year to make informed investment decisions. 
  • Remove loser stocks from your portfolio to reduce the losses because there is no certainty that the stock will rise in the near future. It is advisable to investors that they should follow the right risk management strategy and use a stop loss while trading in stocks to reduce further losses. 
  • Do not invest all your money in one stock abruptly instead you should follow a strategy to invest in any stock. Decide whether you want to invest in a particular stock for the long term or the short term. You should always divide your capital across different asset classes. 
  • Long-term investors should keep an update on the macroeconomic factors and geopolitical tensions. The inflation rate, exchange rates, geopolitical tensions, and GDP rate influence stock market movements. For example, the stock market has been highly affected by the recent Russia-Ukraine war. 

To conclude, Investing in oil stocks in India will help you to earn lucrative returns in the near term because renewable energy stocks have been increasing for decades. However, you need to keep in mind that the oil sector stocks are highly volatile and one should assess their risk profile before investing in petroleum shares. Make sure to analyze your investment objectives, risk appetite, and investment horizon before investing in any stocks. 

This is not an investment advisory. The blog is for information purposes only. Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance, and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs. The performance and returns of any investment portfolio can neither be predicted nor guaranteed. 

  • Which petroleum stocks are best to invest in India?

  • When should I buy petroleum stocks?

  • Which is the best petroleum company in India?

  • Are oil shares a good investment?

  • How are oil stock prices determined?