Share price of city gas companies Indraprastha Gas Ltd (IGL) and Gujarat Gas moved northward in the afternoon trade following reports that the price of natural gas from domestic fields would drop by 18 per cent to $4.24/mBtu from October 1. (PTI)
Share price of city gas companies Indraprastha Gas Ltd (IGL) and Gujarat Gas moved northward in the afternoon trade following reports that the price of natural gas from domestic fields would drop by 18 per cent to $4.24/mBtu from October 1. Till now, the price is $5.18/mBtu.
At 12.58 pm, IGL and Gujarat Gas were trading 4.60 per cent and 2.58 per cent up at Rs 482.20 and Rs 518.20, respectively.
IGL shares opened at Rs 461.90 and had touched a high and low of Rs 498.40 and Rs 491.90, in trade so far. Similarly, Gujarat Gas opened at Rs 510 and had touched a high and low of Rs 530 and Rs 505, in trade. Sensex was up 0.99 per cent at 26,034.10.
The price would be valid for the next six months. The price of domestic natural gas is decided based on a formula approved by Narendra Modi-government in October last year, which is linked to global indices.
“Gas companies like IGL and Gujarat Gas would be beneficiary but its pass on model so if they do not pass full benefit than we could expect margin expansion in 3QFY16,” Emkay Global said in a note.
| Subscribe To Our Free Newsletter |
