NSE Energy Index up 0.4% to 44,200 after Jefferies Global Head of Equity Strategy Chris Wood said the current geopolitical uncertainty keeps oil prices on a tight edge.
Wood noted that, unlike headline‑driven moves, bond yields, China’s oil demand and US policy shifts are now the primary levers moving energy equities.
The commentary came amid a backdrop of a 2‑quarter‑over‑quarter oil price swing of roughly 5%, which analysts say is still well above the sector’s 12‑month average.
IIFL Securities analysts added that the elevated risk premium should keep the energy index bullish, even if crude futures lag behind.
Looking ahead, Jefferies will monitor the US mid‑term elections; Wood predicts that unless there is a dramatic policy pivot, the energy sector will retain its status as a defensive play.
Investors should keep an eye on the upcoming data on US inflation and the next OPEC+ meeting, both of which could shift the risk‑reward balance in the sector.