NIFTY Oil & Gas advances over 1% as crude oil prices fall after first-round of US-Iran talks conclude

At around 12:09 PM, the index was trading 1.01% higher at 11,282.40. The top gainers in the index included Aegis Logistics, Mahanagar Gas, Reliance Industries, GAIL, Chennai Petroleum Corporation, and others, with 12 out of 15 constituents advancing.

Crude oil prices recover

Brent crude oil futures (for August expiry) declined as much as 2.33% to hit an intraday low of $78.69 per bbl on Monday, compared with the closing price of $80.57 per bbl in the previous session.

At the time of writing, the Brent crude oil futures stood at $79.05 per bbl, reflecting a 1.89% drop.

The first round of talks between Iran and the US concluded on Monday, with Iran’s Foreign Minister Abbas Araqchi stating that the country has secured a waiver for oil and petrochemical exports, the release of some frozen assets, and the launch ​of a reconstruction and development plan for Iran, as per reports.

The joint statement from the mediator said that “encouraging progress” was made, including the creation of a mechanism for further technical talks. Furthermore, a High-Level Committee was formed to provide political oversight on the mediation.

The Committee, as per the statement, has agreed upon a roadmap for reaching a final deal between the US and Iran within 60 days.

Additionally, the statement said that a “communication line” has been formed between the parties to “avoid incidents and miscommunication with the aim of safe passage for commercial vessels through the Strait of Hormuz”.

The parties also agreed to the creation of a “de-confliction cell” to ensure “adherence to the termination of military operations in Lebanon”.

The Brent crude oil contract recovered from its session’s peak, which it had hit in early trade on Monday, advancing as much as 2.15% to touch an intraday high of $82.30 per bbl, amid a bumpy start to the diplomatic talks, with US President Donald Trump threatening Iran.

He had said that should Iran take action against Hezbollah, a militant group in Lebanon, after the attacks on Israel, the United States would take action, striking the Gulf nation amid the ongoing peace agreement.

“Iran must immediately stop their highly paid PROXIES in Lebanon from causing trouble. If they don’t, we’ll hit Iran very hard again, just like we did last week, only harder!!!” Donald Trump had said in a post on Truth Social.

Here is how stocks are performing on June 22

Shares of Aegis Logistics surged as much as 8.5% to hit a 52-week high of ₹1,093.55 per unit on the National Stock Exchange (NSE) on Monday, compared to the closing price of ₹1,007.80 apiece. At the time of writing, it was trading 5.8% higher at ₹1,066.25 per equity share.

The stock of Mahanagar Gas jumped as much as 3.3% to touch an intraday high of ₹1,248.90 per equity share on June 22, as against the previous closing price of ₹1,209 apiece. It stood at ₹1,237.70 per unit, up by 2.37% at the time of writing.

Shares of GAIL (India) climbed as much as 2.63% to hit the session’s peak of ₹178.47 apiece on the NSE, from the previous closing price of ₹173.90 per equity share. At the time of writing, it was trading 2.42% higher at ₹178.10 per unit.