Shares of Chennai Petroleum Corporation Ltd. and Mangalore Refinery and Petrochemicals Ltd. are trading with gains of up to 12% on Monday, June 23. The Chennai Petro stock climbed 11.6% to hit a day’s high of ₹706.45, while MRPL rose 9% to hit ₹147.15.
Brokerage firm YES Securities, in a sector update on oil and gas, said its top picks include state-run refiners Chennai Petroleum and MRPL. It also sees scope for a valuation re-rating.
Among the oil marketing companies (OMCs), the brokerage prefers Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL). It also said that Reliance Industries could benefit from higher GRMs in its oil-to-chemicals (O2C) segment.
With Iran’s Parliament approving a possible closure of the Strait of Hormuz after US strikes on its nuclear sites, the risk of disruption at one of the world’s most vital oil routes is rising.
For India, which imports over 35% of its crude oil and about 42% of its LNG through the Strait, the immediate concern is delays in supply and higher shipping costs, according to the brokerage.
However, India is better protected now thanks to a more diversified import mix. In June 2025, Russian oil inflows (2.2 million barrels per day) surpassed total imports from the Middle East. Supplies from the US, West Africa, and Latin America also help, as they do not rely on the Strait of Hormuz.
India’s crude oil imports rose to a record 23.32 million metric tonnes last month, up 9.8% from April, government data showed on Monday.
On a year-on-year basis, crude imports increased 5.9% from 22.03 million tonnes in May 2024, according to preliminary data from the Petroleum Planning and Analysis Cell (PPAC).
Brent Crude prices surged about 5% today, after the US attacked Iran’s nuclear facilities over the weekend, putting an end to days of speculation on whether or not the Donald Trump-led administration will join Israel in the hostilities against Iran.
However, prices could not sustain at those levels and pared the early advance almost immediately.
Attacks on Fordow, Natanz, and Esfahan had raised bet that oil prices will surge again on Monday, after a week of sharp swings. Iran accounts for one-third of the global oil output and is the third largest member of the Organisation of Petroleum Exporting Countries (OPEC+).
In an interaction with CNBC-TV18 on June 17, Santanu Sengupta of Goldman Sachs said that if crude oil prices rise to $75 per barrel, it will hurt the macroeconomy. A $10 per barrel increase in crude oil prices will add 30-40 basis points to the cost burden.
Additionally, it will also add to India’s fiscal burden, although he believes that should be manageable.
With inputs from Hormaz Fatakia
