Shares of oil and gas companies have firmed up for the second day in a row on optimism that Narendra Modi led Bharatiya Janata Party would form the government at the Centre after the conclusion of Lok Sabha elections. The results are scheduled to be announced on May 16, 2014.
Reliance Industries, Oil and Natural Gas Corporation (ONGC), Hindustan Petroleum, Gail India, Oil India, Indian Oil Corporation and Bharat Petroleum Corporation are up 1-4% on the BSE.
The S&P BSE Oil and Gas index, the largest gainer among sectoral indices, is up nearly 3% as compared to 1.4% rise in S&P BSE Sensex at 0935 hours. The oil and gas index has surged 6% in past two trading sessions against 4% rise in benchmark index.
Reliance Industries has surged over 5% to Rs 1,048, its highest level since April 2011 on the BSE. So far in 2014, the stock has rallied 17% against 10% rise in S&P BSE Sensex.
The company along with British energy major BP Plc and Canadian explorer Niko has jointly served an arbitration notice over implementation of a new gas price from April 1, 2014.
ONGC has gained nearly 4% to Rs 361, slightly away from its record high of Rs 368 touched on September 2010.
Analyst at Motilal Oswal maintains Buy rating on the stock with target price of Rs 385. Analyst remains positive on ONGC due to likely increase in net realization due to lower subsidy, driven by continued diesel price hikes, significant beneficiary of scheduled gas price hike from 1 April 2014, and attractive valuations.
Reliance Industries, Oil and Natural Gas Corporation (ONGC), Hindustan Petroleum, Gail India, Oil India, Indian Oil Corporation and Bharat Petroleum Corporation are up 1-4% on the BSE.
The S&P BSE Oil and Gas index, the largest gainer among sectoral indices, is up nearly 3% as compared to 1.4% rise in S&P BSE Sensex at 0935 hours. The oil and gas index has surged 6% in past two trading sessions against 4% rise in benchmark index.
Reliance Industries has surged over 5% to Rs 1,048, its highest level since April 2011 on the BSE. So far in 2014, the stock has rallied 17% against 10% rise in S&P BSE Sensex.
The company along with British energy major BP Plc and Canadian explorer Niko has jointly served an arbitration notice over implementation of a new gas price from April 1, 2014.
ONGC has gained nearly 4% to Rs 361, slightly away from its record high of Rs 368 touched on September 2010.
Analyst at Motilal Oswal maintains Buy rating on the stock with target price of Rs 385. Analyst remains positive on ONGC due to likely increase in net realization due to lower subsidy, driven by continued diesel price hikes, significant beneficiary of scheduled gas price hike from 1 April 2014, and attractive valuations.
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