Gas explorers up on reports of meeting on gas pricing

Reuters Market Eye - Shares in oil and gas explorers gain on media reports that a government committee is meeting later in the day to contemplate a hike in natural gas prices, dealers say.

Oil and Natural Gas Corporation gains 3 percent, Oil India is up 3.3 percent and Reliance Industries rises 2.4 percent.

"Gas contributes around half of ONGC and Oil India revenues, therefore their annualised profits could rise by 10-12 percent if prices are hiked," said an analyst tracking the sector at a domestic brokerage house.

However, dealers also add that the government may offset the benefit of a price hike by increasing the subsidy burden on upstream companies.

 

(Reporting by Abhishek Vishnoi)