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Business News/ Market / Stock-market-news/  Gas transmission firms clock gains on back of favourable policy
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Gas transmission firms clock gains on back of favourable policy

Shares of Gail India gained 9.2%, Gujarat State Petronet rose 6.1%, Petronet LNG 9% and Indraprastha Gas advanced 6.9%

Photo: Pradeep Gaur/MintPremium
Photo: Pradeep Gaur/Mint

Mumbai: Shares of gas transmission companies on Friday jumped on the expectation that they may be key beneficiaries of the draft hydrocarbon policy announced earlier this week.

At 9:50am, the shares of state-run company Gail India Ltd gained as much as 9.2%, its steepest gain since 20 April 2010, and touched a high of 346, a level last seen on 4 August. This is the sixth consecutive session when Gail shares are trading higher. Since 12 November to date, it has gained 22.2% and fell 22.9% year-to-date.

Gujarat State Petronet Ltd (GSPL) rose as much as 6.1%, its maximum gain since 14 October, and touched a high of 133, a level last seen on 12 August. This is the third consecutive session when GSPL is trading higher. Since 17 November to date, it gained 8%, and year-to-date it gained 16%.

Petronet LNG Ltd rose as much as 9%, the maximum gain since 2 September, and touched an all-time high of 224.60 a share. Since 13 November to date, it gained 9.3%, while year-to-date, it gained 7%.

Indraprastha Gas Ltd rose as much as 6.9% to touch a high of 496 a share. Year-to-date, it gained 6.3%.

At 11:30am, the Sensex is trading higher by 0.74%, or 190.03 points, at 26,031.95, while the 50-share CNX Nifty of the National Stock Exchange is trading up 0.73%, or 57.10 points, to 7,899.85.

India wants to follow the revenue-share model for all oil and gas blocks auctioned out for exploration. In a draft paper put up for feedback, the petroleum ministry has recommended a shift to the revenue-share model, a uniform licensing model, and freedom to the explorer to price and market oil and gas, Mint reported.

“The (proposed) move is excellent in terms of moving forward in exploration and production. The biggest problem in the sector was that while petroleum prices were based on international prices, gas was dependent on domestic politics. So if gas will now also be based on international prices due to pricing and marketing freedom, then the gas fields which were earlier unviable will become viable," Mint quoted Debasish Mishra, senior director at Deloitte, an audit and consulting firm.

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Published: 20 Nov 2015, 12:25 PM IST
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