A Complete Guide to Understand the BSE Oil & Gas Sectoral Index

There has been a lot going on in the oil & gas sector. Whether it is Trump threatening India not to buy oil from Russia, or the Middle East crisis, blocking the Suez Canal, or the Strait of Hormuz, which are key passageways for oil transportation. This year has been quite volatile for the sector, but to an investor, the oil and gas sector is crucial. As oil and gas are not individually important to an economy, but to most of the other sectors as well. 

This article will cover the BSE Oil & Gas index, which helps in tracking this sector. The index has moved up by 1.89% since the beginning of this calendar year. This article will cover its constituents, performances, factors affecting the index, risks, and many such aspects that can help you understand the index and the overall segment in a better way. 

BSE OIL & GAS Index – Overview & Constituents 

S&P BSE Oil & Gas Index is a ten-stock index which primarily developed for tracking the oil and gas sector in India. It is comprised of stocks from the BSE 500 universe, which are classified as oil & gas sector stocks as per the BSE industry definitions and classification system. The index was launched on 23 August 2004. 

The BSE Oil & Gas index stocks list includes: (As of 31 July 2025)

1. Adani Total Gas Limited
2. Bharat Petroleum Corporation Ltd.
3. Gail (India) Ltd.
4. Hindustan Petroleum Corporation
5. Indian Oil Corporation Ltd.
6. Indraprastha Gas Ltd.
7. Oil And Natural Gas Corporation
8. Oil India Ltd.
9. Petronet LNG Ltd.
10. Reliance Industries Ltd.

The ten stocks by weightage – 

Stocks	Weight in the Index (%)
Oil and Natural Gas Corp.	20.02
Reliance Industries Ltd.	19.96
Bharat Petroleum Corporation Ltd.	13.68
Indian Oil Corporation Ltd.	11.39
GAIL (INDIA) Ltd.	10.19
Hindustan Petroleum Corp.	8.53
Oil India Ltd.	5.03
Petronet LNG Ltd.	4.6
Adani Total Gas Limited	3.54
Indraprastha Gas Ltd.	3.05

Selection Criteria

The BSE Oil & Gas index is a sectoral index having just ten stocks in it. So, for this index, the selection criteria are – 

• The stocks of the S&P BSE oil & gas index have to be from the BSE 500 universe. 
• The stocks of the BSE Oil and Gas index have to be from the energy sector only. BSE has defined sectors, and the stocks for this index have to be taken out of the energy sector. 
• Individual stocks have a weight cap of 20%. 

Factors Affecting the BSE OIL & GAS Index

The oil & gas sector is volatile as it is affected by multiple factors, and so is the S&P BSE oil & gas index. Let’s look at the top reasons that can make this index volatile – 

• Demand and Supply: First and foremost, the base oil and gas index is affected by the demand and supply metrics of oil and gas products. As these products are highly in demand, but supplies at times get disrupted, or due to limited resources, the supply is limited, the prices go up, which also pushes the index value upward, and vice versa.  
• Geopolitical Events: The second most important reason that makes the oil and gas share price become volatile and in turn affects the BSE Oil and Gas index is the geopolitical events. For instance, the ongoing Middle East crisis has kept the oil prices on their toes. They have been highly volatile in the past years, as have the Trump’s tariff imposition, which led to a cold war between the countries. All these events, and related ones, make the oil and gas market volatile, which in turn leads to fluctuation of the index value.  
• Government Policies: Every country has its policies related to the oil and gas sector. When these policies are changed, altered, or modified, it leads to changes in the oil and gas products pricing, demand, and supply. This again leads to changing the S&P BSE oil and gas index value. 
• News Cycles: All the above factors are circulated by the news channels, thus it is important what’s running in the news; if it’s positive about the oil and gas sector, then the sector can boom, so is the index value, and vice versa. 

BSE OIL & GAS Index Calculation Method

For the BSE Oil & Gas index, the stocks are selected based on average daily market capitalisation. 

For assigning weights, the Modified Market Cap Weighted method is used, and then the following formula is used to derive the index value. 

BSE Oil & Gas Index Value = Index Market Value / Divisor

Performance and Returns (As on 31 July 2025)

Here are the returns for different periods – 

Period	Price Return (%)	Total Return (%)
YTD	1.64	2.79
1 Year	-8.59	-5.64
3 Years	10.76	14.60
5 Years	17.03	21.30
10 Years	11.15	15.11
3 Months	4.18	5.13
1 Month	5.40	5.40

Risk and Volatility (As on 31 July 2025)

Here are the details of Annualised Risk and Annualised Risk-adjusted Return generated by the BSE indices of the oil and gas sector– 

Period	Price Return (%)	Total Return (%)
Annualised Risks
1 Year	25.84	25.64
3 Years	23.49	23.86
5 Years	23.28	23.50
10 Years	22.98	22.82
Annualised Risk-Adjusted Returns
1 Year	-0.33	-0.22
3 Years	0.45	0.61
5 Years	0.73	0.91
10 Years	0.49	0.66

How to Invest in the BSE OIL & GAS INDEX?

You can invest in the BSE Oil & Gas Index using ETFs, index funds, or you can trade them on the trading platform. You can also trade BSE Oil & Gas Index futures and options in the F&O section of Shoonya’s app. To do so, you have to add the index to your watchlist following these steps – 

• Open the Shoonya app.
• Head to the “Watchlist” tab located at the bottom of your screen.
• In the search bar, type “NIFTY IN” or “SENSEX IN” and add it to the watch list, and then you will be able to see the indices.
• Once you find your desired index, click on the add option given on the right side.
• Now you can see the index on the watchlist. 

Conclusion

Tracking the oil and gas sector is crucial for every investor and business, as the prices of oil and gas products determine a lot of other products’ prices. With this S&P BSE Oil and Gas index, you can track the oil companies’ share price in one place and check how the overall sector is performing. This can help you with your investment decisions as well. rforming.

BSE Oil & Gas Index | FAQs

Source: BSE

Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.