There is commodity upturn cycle being witnessed and this is true of even natural gas futures that surged. The surge came on the back of forecast of a chilly November has surfaced concerns that the demand shall be higher and we shall face supply side constraints.
In today's trade, natural gas prices in the futures market are up by 3.8 percent at 455.9 which in the previous session was at 439.2 per 1 mm Btu. Hence on the gains in the natural gas prices there has been seen a traction in oil exploration companies' stocks.
Notably, from October this year, the goverrnment has hiked natural gas prices by 62 percent to $2.9 per 1mm BTU.
On the continuing surge in crude oil price as well as natural gas pirce, ONGC, Hindustan Oil Exploration company surged. Likewise, Petronet LNG, Ril and Oil India gained. Santosh Meena, Head of Research, Swastika Investmart said earlier central banks were saying inflation is transitory, but the current situation is looking different. "Inflation may now trigger the first meaningful correction in the stock market. Investors should have some commodity stocks in their portfolios to hedge themselves with inflation risk," he said.