Oil & gas stocks recover on BSE, RIL major gainer

Oil and gas stocks, led by Reliance Industries, were back in the limelight to close over 2% up on the Bombay Stock Exchange (BSE), supported by cooling crude oil prices in the global market.

The BSE oil and gas index emerged as the best performer among sectoral indices by rising 217.93 points, or 2.24%, at 9,936.95 points as heavy-weight Reliance Industries and state-run oil companies stocks rallied.

Meanwhile, the BSE benchmark Sensex surged 265.39 points, or 1.46%, at 18,439.48.

Sentiments in refiners' stocks improved, after crude oil prices declined in the global market on speculation the disastrous earthquake in Japan will reduce demand.

The crude has declined to a two-week low of $99.10 per barrel in the global market.

"Easing pressure on the state-run oil companies, following a decline in crude oil prices in global market was the major factor behind today's run-up in oil sector stocks," said Manoj Choraria, a Delhi-based stock broker.

The most-weighed on the Sensex, Reliance Industries stocks shot up by 2.63% to close at two-month high of Rs 1,017.75 after moving between Rs 991.80 and Rs 1,020.

State-run oil marketing companies, which import oil, climbed on the back of lower global crude prices.

Stocks of BPCL rallied by 4.36% to Rs 570.50, HPCL gained 4.26% to Rs 334.25, Indian Oil Corp up by 1.54% to Rs 309.90 and Oil India by 0.74% to Rs 1,280.10.

Shares of Cairn India also ended 5.05% up at Rs 346.20 on hopes the government might approve the company's acquisition by Vedanta Resources.