Oil shares gain; govt ratifies gas formula change

Reuters Market Eye - Shares of Indian oil and gas companies gain after the government officially notified a decision taken last year to change the pricing formula for domestic natural gas from April 1, removing the uncertainty on what effectively constitutes a price hike.

Deutsche Bank says the hike will be positive for the sector, and says Oil and Natural Gas Corp Ltd and Oil India Ltd will be the biggest beneficiaries, followed by Reliance Industries Ltd .

Shares of ONGC rise 2.5 percent and Reliance Industries gains nearly 2 percent, while Oil India surges 3.7 percent.

(Reporting by Indulal PM)