The rally in gas stocks followed the government's move to stabilise domestic fuel supplies amid geopolitical disruptions affecting LNG shipments through the Strait of Hormuz, a critical global energy shipping route. According to Moneycontrol, the Ministry of Petroleum and Natural Gas confirmed that India has started receiving additional cargoes of liquefied natural gas (LNG) and liquefied petroleum gas (LPG) to offset supply disruptions caused by the ongoing Middle East conflict. Two LNG cargoes are already on their way to India, while state-run oil marketing companies have secured additional crude shipments from multiple countries. Around 75 percent of crude supplies are now coming from routes other than the Strait of Hormuz, compared with about 55 percent earlier, helping reduce supply risks significantly.
Adani Total Gas emerged as the biggest gainer, surging over 9% to lead the sector rally, as reported by Moneycontrol. The stock extended gains from previous sessions where it had climbed as much as 15% to ₹651. GAIL (India) stock rose about 3.1%, while Gujarat Gas gained nearly 2.9% and Mahanagar Gas climbed about 2.2%. Petronet LNG advanced around 1.8%, with Indraprastha Gas rising about 0.8% and Gujarat State Petronet edging up around 0.6%. This represents a significant escalation from Tuesday's gains, where GAIL (India) rose 2% to touch an intraday high of ₹152.50, Petronet LNG traded near the day's high of ₹292.30, marking a rise of nearly 5%, and Indraprastha Gas zoomed nearly 6% to ₹163.74. The strong performance came despite broader market weakness, with the Sensex down nearly 500 points or 0.65% and the Nifty falling over 150 points.
According to Moneycontrol, India consumes about 189 million metric standard cubic metres per day (MMSCMD) of natural gas, of which 97.5 MMSCMD is produced domestically, while the remainder is imported. Around 47.4 MMSCMD of gas supply has been affected due to force majeure conditions, following disruptions linked to the conflict. The government has invoked emergency powers under the Natural Gas (Supply Regulation) Order, 2026, prioritising gas allocation for essential sectors such as domestic piped gas supply, CNG for transport, LPG production, and pipeline operations. Qatar -- India's largest LNG supplier accounting for about 45 percent of imports -- halted production last week, raising concerns about potential shortages in the domestic market. To address the situation, authorities have directed refiners to maximise LPG production and divert additional output toward household consumption.
According to Moneycontrol, several of these counters had touched their 52-week lows in the previous trading session due to supply disruption fears, prompting value buying as sentiment improved across the energy pack. The recovery reflects investor confidence that government intervention and alternative supply arrangements will help stabilise domestic gas availability. As per BBC, the fall in oil prices has given traders a moment to "exhale," but energy markets remain in a state of "total tug-of-war" with prices likely to spike if the conflict escalates. The Nifty Energy index rose about 1.9% and the Nifty Oil & Gas index gained around 0.9%, bucking the broader market trend where the Sensex was down nearly 500 points.
Share prices in Asia made gains as concerns about the economic impact of the conflict eased, with Japan's Nikkei 225 up 2.7%, Hong Kong's Hang Seng rising 2%, and South Korea's Kospi gaining 5.5%. According to BBC, oil trading will "remain incredibly twitchy" as prices are likely to spike if the conflict escalates and fall if it seems to be easing. The Strait of Hormuz remains crucial to global energy markets as around a fifth of the world's oil passes through the narrow waterway. G7 nations have said they are ready to take "necessary measures" to address global energy supply concerns, though no final decision was made on releasing oil from stockpiles. Brent crude prices have climbed since the beginning of the year as the effective closure of the strait has forced some producers to curb output, with Tuesday's sharp decline driven by expectations that global leaders would intervene before supply disruptions escalate further.
