Share price of gas distributing companies GAIL, Indraprastha Gas (IGL), Petronet LNG and Gujarat Gas hogged limelight on Wednesday as these companies are seen as key beneficiaries from government and judiciary’s focus on pollution.
At 11.20 am, GAIL, IGL and Petronet LNG were trading 4.27 per cent, 3.43 per cent and 1.97 per cent up at Rs 354, Rs 484.60 and Rs 243.80, respectively. Gujarat Gas was trading 5.94 per cent up at Rs 602. GAIL closed 1.34 per cent up at Rs 344.05, whereas Indraprastha Gas Ltd shares ended 6.79 per cent up at Rs 500.35 and Petronet LNG LTD settled 0.48 per cent up at Rs 240.25. Gujarat Gas scrip later closed 5.72 per cent up at Rs 600.75.
In a move to reduce pollution from Delhi, the Supreme Court (SC) banned registration of diesel-run SUVs and cars having engines beyond 2000 cc in Delhi and NCR from March 1, next year. The court also raised Green cess by 100 per cent on commercial vehicles entering Delhi.
SC also said that only CNG-run taxis will be allowed to ply in Delhi and NCR. According to Nomura, the decision will benefit IGL the most. The brokerage house has a ‘Buy’ rating on IGL shares with a target price of Rs 600.
On the other hand, Mahindra & Mahindra dropped over 5 per cent in the morning trade on Wednesday after the Supreme Court on Tuesday agreed to ban registration of diesel SUVs and cars over 2000 cc. Mahindra & Mahindra’s portfolio comprises more of diesel SUVs. The scrip was trading 4.46 per cent down at Rs 1231.50 at 11.30 am. Later, the scrip of the company settled 5.44 per cent down at Rs 1218.90.