Shares of oil and gas companies are under pressure, falling up to 7% after the government defers its decision on gas price hike by three months till September, 2014.
Oil and Natural Gas Corporation (ONGC), Oil India, Hindustan Petroleum Corporation (HPCL), Bharat Petroleum Corporation (BPCL), Indian Oil Corporation (IOC) and Reliance Industries (RIL) are down between 3-7% on the Bombay Stock Exchange (BSE).
The S&P BSE oil and gas index, the largest loser among sectoral indices, is down over 3% as compared to 0.10% decline in benchmark S&P BSE Sensex at 0920 hours.
According to media reports, the Cabinet Committee on Economic Affairs (CCEA) on Wednesday put off the decision to hike gas price by three months stating that the new government should be given more time to ponder upon it.
The government also clarified that there is no proposal from the petroleum ministry's for any hike in LPG or kerosene prices. This means oil marketing companies would continue to face higher under recoveries in case of these two fuels, added report.
The deferment of gas price decision will definitely impact upstream companies' shares negatively.
Among the individual stocks, ONGC, the largest loser among the pack, has plunged 7% to Rs 407 on BSE. Oil India has dipped 5% to Rs 558, while HPCL, BPCL and RIL are down by 3% each.
Oil and Natural Gas Corporation (ONGC), Oil India, Hindustan Petroleum Corporation (HPCL), Bharat Petroleum Corporation (BPCL), Indian Oil Corporation (IOC) and Reliance Industries (RIL) are down between 3-7% on the Bombay Stock Exchange (BSE).
The S&P BSE oil and gas index, the largest loser among sectoral indices, is down over 3% as compared to 0.10% decline in benchmark S&P BSE Sensex at 0920 hours.
According to media reports, the Cabinet Committee on Economic Affairs (CCEA) on Wednesday put off the decision to hike gas price by three months stating that the new government should be given more time to ponder upon it.
The government also clarified that there is no proposal from the petroleum ministry's for any hike in LPG or kerosene prices. This means oil marketing companies would continue to face higher under recoveries in case of these two fuels, added report.
The deferment of gas price decision will definitely impact upstream companies' shares negatively.
Among the individual stocks, ONGC, the largest loser among the pack, has plunged 7% to Rs 407 on BSE. Oil India has dipped 5% to Rs 558, while HPCL, BPCL and RIL are down by 3% each.
