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The big-ticket reforms announced by the Centre over the weekend — diesel price deregulation and new pricing for domestically produced natural gas — had a positive impact on the stocks of oil marketing companies Bharat Petroleum Corporation, Hindustan Petroleum Corporation and Indian Oil and upstream companies such as ONGC and GAIL (India), on Monday.
The stocks gained between 1.3 per cent and 7.3 per cent.
HPCL jumped 7.28 per cent to ₹526.95, while BPCL surged 4.57 per cent to ₹696.55 on the BSE and IOC edged up 3.84 per cent to ₹379.60.
Index heavyweight ONGC rose 5.44 per cent, while Petronet LNG moved up 3.69 per cent and GAIL, 2.41 per cent.
The BSE oil and gas index ended at 10,746.97, up 1.94 per cent.
Spark Capital, in a note, said: “These measures are extremely positive and we view direct benefit transfer for LPG as the next leg to curtail LPG related subsidies. We await a clear subsidy sharing mechanism between the Government, upstream and OMCs, which could provide a further fillip to upstream stocks (such as ONGC/OIL),”
The Mukesh Ambani-controlled Reliance Industries Limited, however, slipped as it will not immediately get the new rates in two of its key producing gas fields as the company and the Government are in an arbitration over the steep fall in output from these areas.
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