Energy stocks gained up to 8% on Monday on a host of triggers including a drop in crude oil prices, budget announcements and earnings. Among the top gainers were Indian Oil Corporation (IOC) which hit a fresh 52-week high of Rs 175.60 on the NSE after a nearly 7% weekly drop in the benchmark crude oil prices last week.

Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation were also trading in the green and both counters hit their 52-week highs as well.

The Nifty Oil & Gas index hit a fresh 52-week high for the second session in a row. It hit a peak of 11,368.30 as 9 out of 15 stocks in the index were trading in the green.

The top gainer was Castrol India which jumped 4.5% to hit its 52-week top of Rs 207.45. The lubricants maker reported a 25% growth in PAT at Rs 242 crore for the December quarter on Friday. The company had posted a PAT of Rs 133 crore in the year-ago period, Castrol India said in a statement.

Certain stocks in the renewable space, particularly solar plays, were in demand on Monday as well after the government’s clean energy push in the Union Budget 2024.

Renewable energy stocks have been in the news since a slew of announcements by Finance Minister Nirmala Sithraman in her last budget of the Modi 2.0 government.Shares of Indian Renewable Energy Development Agency (IREDA), Waaree Renewable, Gensol Engineering and KPI Green Energy were up 5% each. Meanwhile, Inox Wind jumped over 4%. These stocks had rallied up to 5% on Friday as well. While this was an interim or a vote on account budget and a full budget will come in July after the new government assumes power, FM Sithraman increased allocations on production linked incentive (PLI) schemes on solar power grid from 4,645 crore in 2023-24 (Budgeted Estimates) to Rs 6,200 crore in 2024-25 (BE).

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Sitharaman also increased allocations for the National Green Hydrogen Mission to Rs 600 for 2024-25 versus Rs 297 crore in 2023-24(BE).

Among other measures, she announced that the government will make provisions for viability gap funding for harnessing offshore wind energy potential for the initial capacity of one giga-watt. Moreover, a coal gasification and liquefaction capacity of 100 MT will be set up by 2030 which will also help in reducing imports of natural gas, methanol, and ammonia.

Phased mandatory blending of compressed biogas (CBG) in compressed natural gas (CNG) for transport and piped natural gas (PNG) for domestic purposes will be mandated, she said on Thursday during her budget speech.

The government will also provide financial assistance for the procurement of biomass aggregation machinery to support collection.

In the solar energy sector, rooftop solarization for 1 crore households will be enabled to obtain up to 300 units of free electricity per month.

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