New delhi: The Election Commission’s direction to the Central Government to put off its decision to implement the gas price hike from April 1 had a mixed impact on a section of the stocks that would be impacted by the move. While some of those expected to benefit by the Centre’s decision took a knock, a few of the gas industry stocks made gains today.
The Government had cleared a proposal to increase the domestic natural gas price from $4.2 per million British thermal units (mBtu) to $8.4, which was to take effect from the new financial year (April 1). EC was reported to have deferred a decision after considering all relevant facts, including the fact that the issue was before the country’s apex court. There were accusations that Reliance Industries was set to make a windfall by the move.
The EC’s decision acted as a dampener to the stocks in the sector with Reliance Industries emerging as the biggest loser shedding 3.02 per cent or Rs 27.35 to slip to Rs 878.05. ONGC lost Rs 7.80 to trade at Rs 313.30 and Oil India was down by Rs 12.20 to trade at Rs 470 in the afternoon trade on the NSE.
However, the EC’s order had a positive impact on a few gas sector stocks. GAIL (India) Ltd was up by Rs 3.60 at Rs 373.35, Indraprastha Gas gained Rs 9.10 to trade at Rs 295.60 and Gujarat Gas shares were up by Rs 2.50 at Rs 260.65. Stocks that were up and those that were down witnessed heavy volume.
The decision to hike the gas prices was taken by the Central Government in January, much before the Model Code of Conduct kicked in. But the Petroleum and Natural Gas ministry, apparently as a measure of abundant caution, had sought the opinion of EC before the new rates become effective from April 1 as it did not want to look like favouring any particularly corporate entity. AAP leader Arvind Kejriwal had asked the EC to put on hold the gas price hike in view of the elections.
Bureau Report
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