OMCs rally after ministry gives go ahead for partial diesel price hike
“The move clearly indicates that India is ready to address difficult policy decisions to restore economic growth and stalled capital expenditure cycle,” said Abhay Lajjawala, MD and head of research at Deutsche Equities India. He termed the decision as a ‘pragmatic step’ by the government.
Indian oil, the country’s biggest refiner advanced 6.6% to its highest in more than a year to R315.9 on the BSE. Hindustan Petroleum Corp (HPCL) rallied nearly 6% to close at R345.6, after touching a new 52-week high. Bharat Petroleum Corp (BPCL) and Oil & Natural Gas Corp (ONGC) rallied to their 52-weeks highs before ending the session with gains of about 3.7% each at R395.9 and R314.5, respectively. The sectoral index on the oil & gas companies was the biggest gainer as it rose 3.1% to 279.8, with its biggest component Reliance Industries also progressing 3% to its 52-week high ahead of its December- quarter results.
On Thursday, oil minister Veerappa Moily said the oil companies have been permitted to raise diesel prices by a small quantum periodically till such time they are able to cover R9.60 per litre loss they incur on
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