Posted on March 13, 2025, by Niftynews
Oil India Limited share price is witnessing an uptick today, March 13, 2025, after a significant development that could benefit the company in the long term. Oil India shares opened 1% higher at ₹370 on the NSE, compared to the previous close of ₹366.80, and went on to reach an intraday high of ₹382. At 2:15 PM, the stock was trading at ₹377, up 2.78%.
This rise in the Oil India Limited share price came just a day after the Lok Sabha cleared the Oilfields (Regulation and Development) Amendment Bill, 2024, a bill that could have substantial implications for the future growth of the company and its operations. Here’s why the Oil India Limited share price is gaining today.
Oil India Share Price Surge Following Lok Sabha Approval
The surge in Oil India Limited share price is linked to the approval of the Oilfields Amendment Bill, 2024 by the Lok Sabha. This bill, which was previously cleared by the Rajya Sabha in December 2024, aims to amend the existing regulations governing the exploration and production of oil and gas in India. The approval is expected to bring about significant positive changes for the industry and could give a boost to Oil India’s growth prospects.
What Does the Oilfields Amendment Bill, 2024 Mean for Oil India?
The Oilfields Amendment Bill, 2024 delinks petroleum operations from mining activities and addresses a major grievance of global oil companies looking to invest in India. According to Petroleum and Natural Gas Minister Hardeep Singh Puri, this bill aims to provide stability for oil and gas operations, especially in terms of the lease tenure and operational conditions.
For Oil India Limited, the passing of this bill means greater stability and security in its exploration and production operations. The bill’s provisions are designed to ensure a level playing field between public and private sectors. This clarity in regulatory frameworks could attract further investment in India’s oil and gas sector, thus benefiting companies like Oil India.
Why Is the Oil India Limited Share Price Rising Amid Rangebound Market Conditions?
Despite benchmark indices showing rangebound moves, Oil India shares have become one of the top gainers in the Nifty Oil & Gas Index. The company’s position as the second-largest oil and gas producer in India and its strategic importance within the sector make it an attractive option for investors. The Oil India Limited share price rise reflects investor optimism driven by the legislative progress surrounding the oil and gas industry.
The company’s strong fundamentals, including a dividend yield of 3.15%, provide further appeal to investors, especially those looking for stable returns in the energy sector.
Oil India: A Stock with Multibagger Potential
While Oil India Limited share price has remained flat over the past year, the company has delivered impressive returns of 120% in the last two years. The Oil India stock has proven to be a multibagger for long-term investors, and the recent developments surrounding the Oilfields Amendment Bill may lead to continued growth in its share price.
With a market capitalization of ₹61,217.38 crore, Oil India is a constituent of both the BSE 200 index and the Nifty Midcap 100, further cementing its position as a key player in India’s energy sector.
Conclusion: Oil India Limited Share Price Outlook
In conclusion, the Oil India Limited share price rise today is a result of the positive news surrounding the Oilfields Amendment Bill. With the bill clearing legislative hurdles, Oil India is expected to benefit from a more stable and attractive investment environment. Investors should continue to monitor Oil India’s stock as it remains a strong player in India’s growing oil and gas sector.
