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Stocks of major oil and gas companies are likely to gain next week, due to a positive sentiment after the 0.41-rupee-per-ltr hike in petrol price announced late Friday. Though the price increase is not significant, as it includes 21-paise-per-ltr hike in dealer commission, it will help the sentiment move in favour of oil retailers. The price of diesel will also go up as the government raised dealers commission on the fuel, too, by 0.10 rupees per ltr.
Stocks of upstream companies have already received a boost after the Cabinet Committee on Economic Affairs Thursday gave its final approval to the increase in gas prices from April and turned down a proposal to cap the prices of domestically produced natural gas. The main beneficiary of the decisions taken by the Cabinet panel on Thursday was Reliance Industries Ltd that was allowed to reap the benefits of the new gas pricing mechanism from April after depositing quarterly bank guarantees till issues around the decline in output from its KG-D6 blocks were sorted. However, profit booking will limit any strong movement in the scrips of the upstream companies next week.
Stocks of major oil and gas companies are likely to gain next week, due to a positive sentiment after the 0.41-rupee-per-ltr hike in petrol price announced late Friday. Though the price increase is not significant, as it includes 21-paise-per-ltr hike in dealer commission, it will help the sentiment move in favour of oil retailers. The price of diesel will also go up as the government raised dealers commission on the fuel, too, by 0.10 rupees per ltr.
Stocks of upstream companies have already received a boost after the Cabinet Committee on Economic Affairs Thursday gave its final approval to the increase in gas prices from April and turned down a proposal to cap the prices of domestically produced natural gas. The main beneficiary of the decisions taken by the Cabinet panel on Thursday was Reliance Industries Ltd that was allowed to reap the benefits of the new gas pricing mechanism from April after depositing quarterly bank guarantees till issues around the decline in output from its KG-D6 blocks were sorted. However, profit booking will limit any strong movement in the scrips of the upstream companies next week.
