Oil and gas companies on Friday rose as much as 10 per cent
on the bourses, after the government approved near doubling of natural gas prices, a move seen positive for upstream companies.
The government gave its approval on Thursday to the near doubling of natural gas prices to $8.4 from April 1, 2014, a move which will
result in rise in power tariff, urea cost and CNG prices.
The new price will apply uniformly to all producers, be it state-owned firms like Oil and Natural Gas Corp (ONGC) or private sector Reliance Industries (RIL).
Cheering the move, ONGC climbed 10 per cent to Rs 353, while RIL's scrip jumped 5.12 per cent to Rs 873 on the Bombay Stock Exchange. Among others, Oil India rallied 9 per cent, while Gail India was trading 1.96 per cent higher.
"The hike is positive for upstream companies such as ONGC and Reliance Industries," Angel Broking said in a report.
The BSE Sensex, meanwhile, was trading at 19,301.42 in afternoon trade - a jump of 425.47 points or 2.25 per cent from its previous close.
With inputs from PTIDisclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
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