Indian Oil Corporation Ltd Gains 7.36%: 6 Key Factors Driving the Rally

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Indian Oil Corporation Ltd (IOC) delivered a strong weekly performance from 2 to 6 February 2026, gaining 7.36% compared to the Sensex’s 1.51% rise. The stock demonstrated consistent upward momentum, hitting multiple new 52-week highs and outperforming both its sector and the broader market. This rally was supported by robust quarterly results, a significant upgrade in investment rating, technical momentum shifts, and heightened derivatives market activity, all underscoring investor confidence in IOC’s growth trajectory.

Key Events This Week

2 Feb: Intraday high of Rs.165 with 3.32% surge

3 Feb: Mojo Grade upgraded to Strong Buy

4 Feb: Intraday high of Rs.173.60 with 3.61% gain

5 Feb: New 52-week high at Rs.178 and sharp open interest surge

6 Feb: New 52-week high at Rs.181 amid exceptional volume

Week Open
Rs.164.60
Week Close
Rs.175.10
+7.36%
Week High
Rs.181.00
Sensex Change
+1.51%

2 February: Intraday Surge Signals Early Strength

IOC began the week on a strong note, surging 3.32% intraday to reach Rs.165, closing at Rs.164.60 (+0.92%). This outperformance was notable against the Sensex’s 1.03% decline to 35,814.09. The stock traded above all major moving averages, signalling robust technical support. The Oil Exploration and Refineries sector also gained 2.62%, but IOC’s relative strength stood out, reflecting positive investor sentiment amid a volatile market backdrop.

3 February: Upgrade to Strong Buy Boosts Confidence

On 3 February, MarketsMOJO upgraded IOC’s mojo grade from Buy to Strong Buy, raising its mojo score to 81.0. This upgrade was driven by exceptional quarterly earnings growth, attractive valuation metrics including a low PEG ratio of 0.2, and a high dividend yield near 4.9%. The company’s PAT surged 105.8% to ₹7,817.55 crore, with a return on capital employed of 10.6%. The stock closed at Rs.167.55 (+1.79%), outperforming the Sensex’s 2.63% gain. Technical momentum also shifted bullish, with daily moving averages confirming upward trends.

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4 February: Continued Momentum with New Intraday High

IOC extended its gains on 4 February, hitting an intraday high of Rs.173.60 (+3.61%) and closing at Rs.172.75 (+3.10%). This marked the third consecutive day of gains, accumulating an 8.54% return over this period. The stock outperformed the oil sector’s 2.14% gain and the Sensex’s marginal 0.37% rise. Trading above all key moving averages, IOC demonstrated strong technical positioning despite a cautious broader market. The dividend yield remained attractive at 4.77%, supporting investor interest.

5 February: New 52-Week High and Surge in Derivatives Activity

On 5 February, IOC reached a new 52-week high of Rs.178, closing at Rs.175.75 (+1.74%). This was part of a four-day winning streak delivering a 9.79% return. The stock outperformed the Sensex, which declined 0.51%, and the oil sector by 1.41%. Notably, open interest in IOC’s derivatives surged 18.43%, with 6,795 additional contracts added, signalling strong market participation and bullish positioning. The futures and options segments saw combined notional values exceeding ₹95,000 crore, reflecting heightened investor conviction. Delivery volumes surged 87.34% above the five-day average, indicating genuine accumulation.

6 February: Fresh 52-Week High Amid Exceptional Volume

IOC capped the week by hitting a new 52-week high of Rs.181, despite a slight intraday dip of 0.37% to close at Rs.175.10. The stock recorded exceptional volume of 1.15 crore shares, with a traded value of approximately Rs.205.97 crore. This volume surge accompanied a 10.96% gain over the past five sessions, underscoring sustained accumulation. IOC outperformed the Sensex, which declined 0.41%, and the oil sector. The company’s mojo score improved further to 87.0, maintaining its Strong Buy rating. Institutional holdings remained robust at 38.17%, supporting price stability and liquidity.

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Daily Price Performance vs Sensex

Date Stock Price Day Change Sensex Day Change
2026-02-02 Rs.164.60 +0.92% 35,814.09 -1.03%
2026-02-03 Rs.167.55 +1.79% 36,755.96 +2.63%
2026-02-04 Rs.172.75 +3.10% 36,890.21 +0.37%
2026-02-05 Rs.175.75 +1.74% 36,695.11 -0.53%
2026-02-06 Rs.175.10 -0.37% 36,730.20 +0.10%

Key Takeaways

Strong Financial Performance: IOC’s quarterly results were a major catalyst, with PAT doubling to ₹7,817.55 crore and operating profit margins expanding significantly. This robust earnings growth underpinned investor confidence throughout the week.

Rating Upgrade to Strong Buy: The MarketsMOJO upgrade on 3 February reflected improved fundamentals, valuation, and technical momentum, reinforcing the stock’s appeal to investors.

Technical Momentum and New Highs: The stock consistently traded above all major moving averages, hitting multiple 52-week highs (Rs.178 on 5 Feb and Rs.181 on 6 Feb), signalling sustained bullish momentum.

Derivatives Market Activity: A sharp surge in open interest and elevated volumes in futures and options indicated strong market participation and directional bets favouring further upside.

Institutional Support and Dividend Yield: Institutional holdings at 38.17% and a dividend yield above 4.5% provided stability and income appeal, complementing the growth narrative.

Conclusion

Indian Oil Corporation Ltd’s performance in the week ending 6 February 2026 was marked by strong price appreciation, technical strength, and fundamental improvements. The stock’s 7.36% gain outpaced the Sensex’s 1.51% rise, driven by record quarterly earnings, a significant mojo grade upgrade, and robust market participation in both cash and derivatives segments. Multiple new 52-week highs and sustained volume surges highlight the stock’s leadership within the oil sector. While a minor pullback on the final day suggests some consolidation, the overall trend remains positive, supported by solid operational metrics and institutional confidence. Investors monitoring IOC will find a compelling combination of growth, income, and technical momentum as the company continues to capitalise on favourable sector dynamics.

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