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09-07-2013, 04:15 AM #1
Oil stocks gain on diesel price hike hopes
Oil and gas stocks rose up to 7.1 per cent on Friday amid hopes that a decision on raising fuel prices will be taken after UPA Chairperson Sonia Gandhi returns from the US.
Gandhi left for the US on September 2 for a medical check-up and is expected to be back in about a week.
A decision on raising diesel prices by Rs 3-5 per litre, kerosene by Rs 2 and LPG by up to Rs 50 per cylinder will be taken after Gandhi returns, top government officials had said on Thursday.
"It is a political decision. The Congress Core Group will have to first decide on it before it can be considered by the Cabinet Committee on Political Affairs (CCPA)," an official had said.
Shares of ONGC surged 7.17 per cent to Rs 289.15 and was the second biggest gainer on the Sensex after ICICI Bank.
Among state-owned oil marketing companies, shares of HPCL shot-up by 5.92 per cent while BPCL gained 4.21 per cent and IOC rose by 4.13 per cent on the BSE. Oil India shares gained 2.62 per cent.
Led by the gains in these stocks, the BSE oil and gas index ended the day with a gain of 2.20 per cent at 8,572.54.
Meanwhile, the BSE Sensex settled 290 points higher at 19,270.06.