Oil and gas stocks, led by index heavyweight RIL, on Tuesday soared by up to 6 per cent on the bourses amid falling crude oil prices.
Shares of RIL settled 2.58 per cent up at Rs 737.25 on the BSE. ONGC was up 1.67 per cent at Rs 267.60.
Among others, Gail India moved up by 2.66 per cent and OIL India gained 1.47 per cent.
Besides, oil marketing companies, too, rallied with HPCL gaining 6.36 per cent, BPCL rose by 1.84 per cent and IOC went up by 3.46 per cent.
“PSU oil marketing companies surged on reports that government is likely to raise prices of diesel and cooking gas shortly,” said Mr Shanu Goel, Research Analyst, Bonanza Portfolio.
Following the gains in these stocks, the BSE oil and gas stocks ended 2.14 per cent up at 7,921.27.
Brent crude oil is currently trading at $95.58 per barrel.
A fall in global crude prices would result in lower import bill for the domestic entities, which increases their profit.