PTI
Mumbai
Shares of gas distribution companies rose by as much as 4 per cent today after natural gas prices were cut by a steep 18 per cent to $3.82 per unit, the biggest ever reduction in the rates.
Indraprastha Gas scrip was up 3.70 per cent, Gujarat Gas gained 2.76 per cent, Gujarat State Petronet jumped 1.42 per cent and Petronet LNG gained 1.16 per cent on BSE.
Shares of Indraprastha Gas surged 8.11 per cent to Rs 498.40 during the day. In intra-day, Gujarat Gas rallied 4.91 per cent to Rs 530, Gujarat State Petronet gained 2.97 per cent to Rs 119.50 and Petronet LNG was up 2.48 per cent to Rs 181.65.
Natural gas prices were today cut by a steep 18 per cent to USD 3.82 per unit, a move that may hit the profit of producers like ONGC.
"Slashing of prices of natural gas by 18 per cent sparked a rally in gas distributing companies like Indraprastha Gas and Gujarat Gas," said Hiren Dhakan, Associate Fund manager, Bonanza Portfolio Ltd.
While the cut will impact the revenue of producers like Oil and Natural Gas Corp (ONGC) and Reliance Industries, it will bring gains for users in the power and fertiliser sector in the form of lower feedstock cost.
Shares of ONGC and RIL still ended with gains of 1.35 per cent and 2.54 per cent, respectively.
