Shares of oil and gas stocks rallied over 10 per cent in early trade on Bombay Stock Exchange (BSE) after the Cabinet Committee of Economic Affairs (CCEA) agreed to raise gas prices to US$8.4/mmbtu, effective April 2014, for a period of five years.
The analyst estimated that hike is positive for upstream companies such as ONGC, Oil India and Reliance Industries.
Buoyed by development, shares of ONGC surged as much 10 per cent to trade at Rs 353.00 a piece on the BSE.
In a similar fashion, shares of the Oil India spurted 9 per cent to Rs 621, followed by Reliance Industries by 5 per cent and Cairn India by 4 per cent on BSE.
Meanwhile, the broader benchmark Sensex was quoting at 19,181.37, up 305.42 points or 1.63 per cent at 9:40 hours.