MUMBAI (Commodity Online): Oil & gas stocks trade firm on the Indian bourses even as the crude oil hold bearish trend ahead of OPEC summit, which is expected to leave output the same even as crude remains in oversupply.

The weekly US Energy Information Administration (EIA) inventory report is expected to show continuing increase in crude supplies. Crude prices dropped to a low of almost two weeks on Monday as traders were cautious about the economic outlook ahead of a key interest-rate policy meeting of the US Federal Reserve.

Light, sweet crude for April delivery settled $1.44, or 1.8%, lower at $79.80 a barrel on the New York Mercantile Exchange, the first time oil has closed below $80 a barrel since March 2. Brent crude on the ICE futures exchange closed $1.50, or 1.9%, lower at $77.89 a barrel.

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Oil stocks on Indian bourses traded with upward sentiments as key oil companies witnessed increased buying in afternoon trading session on Tuesday. India’s largest private sector conglomerate, Reliance Industries Ltd (BOM:500325) rose over 2% to Rs.1050.15. The company has filed Rs.770 crore as advance tax for March 2010 quarter, which was more than double than that was filed for the same period last year. The rise in advance tax signifies improved business and profitability of the company.

Other gainers among oil stocks included Reliance Natural Resources Ltd (BOM:532709) that rose over 3.5% to Rs.63.80. Essar Oil Ltd (BOM:500134) gained close to 2% to Rs.140.50 in the afternoon trades.

Meanwhile, the key benchmark index, Sensex was trading with marginal gains of 0.15% to 17,190.15 points. The sectoral index, BSE Oil & Gas surged by 1.79% to 9,984.60.

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