Gas stocks surge as Street turns bullish on Centre's revised natural gas pricing formula
GAIL slashed its CNG and piped cooking gas prices by up to Rs 7 per kg in various states, while MGL also reduced CNG prices by Rs 8 per kg and domestic PNG by Rs 5/SCM (standard cubic metre) in and around Mumbai.
Shares of Mahanagar Gas Ltd (MGL), Petronet LNG, Gujarat Gas, Oil India, Oil and Natural Gas Corp (ONGC) and GAIL (India) rose on Monday as Dalal Street turned bullish on gas distribution companies. The surge came after the companies trimmed the prices of CNG and PNG following the government's decision on Friday to index domestic gas prices to crude with a cap of $6.57 per mmBtu (million metric British thermal units), delinking them from rates at gas hubs in surplus markets such as the US, Canada and Russia.
Following the government action, GAIL slashed its CNG and piped cooking gas prices by up to Rs 7 per kg in various states, while MGL also reduced CNG prices by Rs 8 per kg and domestic PNG by Rs 5/SCM (standard cubic metre) in and around Mumbai. IGL has cut CNG and PNG prices by Rs 6 in the national capital. Private gas service major Adani Total Gas also reduced its CNG prices by Rs 8.13 per kg and that of PNG by Rs 5.06 per SCM.
ONGC traded over 2 per cent higher at Rs 153.90, IGL gained 1.2 per cent trading at Rs 468.40, while Gujarat Gas was positive by half a per cent, trading at Rs 469.05. Adani Total Gas zoomed almost 5 per cent, quoting at Rs 906.90. GAIL India was 0.43 per cent up at Rs 105.90.
India Vs Australia LIVE Score, 3rd ODI Match Updates, IND VS AUS live Scorecard: Rohit Sharma's men eye clean sweep against struggling Aussies at Rajkot
Jefferies raises target on IGL, MGL
Global brokerage Jefferies has maintained 'buy' rating on IGL but raised the target price on the PSU from Rs 475 to Rs 540, suggesting an over 13.5 per cent upside. The brokerage also raised target on Gujarat Gas from Rs 405 to Rs 425, while retaining 'underperform' rating.
Govt accepts Kirit Parikh Committee Recommendations on natural gas pricing from APM fields
The move comes after the Centre accepted several key recommendations made by the Kirit Parikh Committee vis-a-vis the pricing of natural gas produced from APM fields.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
India vs Australia 3rd ODI Free Live Streaming: When and How to watch IND VS AUS match live on Web, tv, mobile apps online
NPS Tier II Default Scheme: Flexibility, easy withdrawals, and no minimum balance; here's what makes it a smart choice
Debt Mutual Funds vs Fixed Deposits: Are debt funds a better choice for higher returns and early withdrawal?
Amazon Great Indian Festival Sale 2023 likely to begin soon; discounts, exchange and bank offers, and more