Reliance Industries shares lose ground as natural gas price hike deferred

PTI Posted online: Thursday, Jun 26, 2014 at 0000 hrs
Mumbai : Shares of energy behemoth Reliance Industries today lost ground with a fall of nearly three per cent in its price after the government postponed decision on a hike in natural gas prices, pending a "comprehensive" review.

However, shares of fertiliser firms rose sharply as a hike in natural gas prices is expected to have adverse financial implications for them.

Shares of state-run ONGC also fell over five per cent to Rs 414, while that of Oil India Ltd was down nearly four per cent to Rs 566.20 at the BSE.

Reliance Industries (RIL) stock was down 2.6 per cent to Rs 1,023.75 in late morning trade after hitting a low of Rs 1,015.75 earlier in the opening trade at the BSE.

In a setback to gas producers like RIL, the Cabinet Committee on Economic Affairs last evening postponed a revision in natural gas prices by three months and decided that comprehensive discussions were necessary on the issue.

"It was decided that consultations would be held with all stakeholders and it was important to keep public interest in mind," Petroleum and Natural Gas Minister Dharmendra Pradhan said after the CCEA meeting.

Among fertiliser firms, shares of Chambal Fertilisers and Chemicals rose nearly three per cent and Rashtriya Chemicals and Fertilisers gained about two per cent.

Among others, Deepak Fertilisers, Coromandel International, National Fertilizers, Gujarat State Fertilizers and Zuari Global were also up by about one per cent in opening trade.