Oil and Gas Cools Off, Power and Renewables Step Into the Spotlight

By Ventura Research Team 3 min Read Apr 21, 2026

Power and renewable energy stocks outperform oil and gas sector amid crude price volatility

Summary:
This week India's energy space moved in two different directions. Oil and gas stocks lost ground while power generation and renewable energy companies gained. The Nifty Energy Index closed last week at 39,184.70, up 0.78% from its open of 38,938.40, touching a high of 39,478.70 and a low of 38,643.75.

Nifty Oil and Gas: Weekly Performance

The Nifty Oil and Gas Index opened last week at 10,952.85, hit a high of 11,436.65, slipped to a low of 10,893.55, and closed at 11,409.95, up 1.93% for the week. However, looking at individual stock performance within the index, the picture is more cautious. Oil and Natural Gas Corporation, India's largest oil producer, last week closed at ₹284.05, up 0.46% on Friday and down 0.86% over the week. Oil India ended the day at ₹470.10, up a marginal 1.67% on Friday but still down 0.25% for the week. Deep Industries closed at ₹477.35, nearly flat on the day but gaining 4.43% last week.

Why Oil and Gas Stocks Faced Pressure

The weakness was visible across the energy value chain, from upstream explorers to refiners, gas importers, and city gas distributors, as investors rushed to lock in profits after a highly volatile session when crude briefly surged above $110 per barrel. Elevated crude prices have brought with them uncertain refining margins, supply chain disruptions from the ongoing Strait of Hormuz closure, and concerns around downstream demand. Global crude oil price volatility, influenced by geopolitical events, remains an ongoing factor for companies like ONGC, where a $1 per barrel change in oil prices can shift revenue by approximately ₹5,643 crore. With this level of uncertainty, many investors have chosen to book profits rather than hold fresh positions in the sector.

Power Sector: Weekly Performance

The power sector told a different story last week. Adani Power closed at ₹198.50, up 2.75% on Friday and 12.91% for last week. NTPC ended at ₹393.60, up 1.12% on Friday and up 3.53% for last week. Power Grid Corporation closed at ₹318.10, up 1.87% on Friday and 5.07% over the week. Adani Green Energy closed at ₹1,127.30, up 0.75% on Friday and 3.87% for the week.

Why Power Stocks Are Outperforming

Power stocks such as NTPC, Adani Power, Adani Green, Power Grid Corporation, and Tata Power have outperformed the market with gains up to 30 per cent thus far in calendar year 2026, as against a 7.1 per cent dip in the Nifty 50 index. A hotter-than-normal summer is emerging as a primary catalyst for the Indian power sector, with peak electricity demand forecast to reach 275-285 GW.

There is a global consensus around El Niño conditions developing during the South West Monsoon season. Most recent El Niño years have marked spikes in power demand. A shortfall in hydro generation and a spike in coal-fired generation, which is positive for NTPC and Adani Power, along with high merchant power prices benefiting Adani Green and Adani Power.

Renewables; A Major Infrastructure Milestone

On the renewables side, Adani Energy Solutions commissioned a 1,000 MW HVDC transmission link between Kudus and Aarey in Mumbai, enabling higher integration of renewable energy into the Mumbai grid. The project includes a 30 km overhead and 50 km underground corridor and features the world's first compact high-voltage direct current substation, improving grid reliability and reducing dependence on in-city power generation.

Conclusion

The Nifty Energy Index closed in green this week, but the gains were driven largely by power and renewables. Oil and gas stocks within the index saw pressure, with ONGC and Oil India both ending the week lower. Investors this week moved toward domestic electricity demand and grid infrastructure stocks, while trimming exposure to crude-linked names.