Oil stocks gain over 7% on diesel price hike hopes
Mumbai: Oil and gas stocks on Friday rose by up to 7.1 percent amid hopes that a decision on raising fuel prices will be taken after UPA Chairperson Sonia Gandhi returns from the US.
Shares of ONGC surged 7.17 percent to Rs 289.15 and was the second biggest gainer on the Sensex after ICICI Bank.
Among state-owned oil marketing companies, shares of HPCL shot-up by 5.92 percent, while BPCL gained 4.21 percent and IOC rose by 4.13 percent on the BSE.
Oil India shares gained 2.62 percent.
Led by the gains in these stocks, the BSE oil and gas index ended the day with a gain of 2.20 percent at 8,572.54.
A decision on raising diesel prices by Rs 3-5 per litre, kerosene by Rs 2 and LPG by up to Rs 50 per cylinder will be taken after UPA Chairperson Sonia Gandhi returns from the US, top government officials had said yesterday.
"It is a political decision. The Congress Core Group will have to first decide on it before it can be considered by the Cabinet Committee on Political Affairs (CCPA)," an official had said.
Sonia Gandhi left for the United States on September 2 for a medical check-up and is expected to be back in about a week.
Meanwhile, in the broader market, the BSE benchmark Sensex settled 290 points higher at 19,270.06.