The surge in prices comes as PNGRB has initiated the process to amend the Natural Gas Pipeline Tariff Regulations, 2008.
Shares of state-owned Indraprastha Gas Limited (IGL) and GAIL witnessed a significant uptick up to 6 per cent on Monday. The surge in share prices comes as the development related to the Petroleum and Natural Gas Regulatory Board (PNGRB), which is expected to have a positive impact on gas transmission companies.
Shares of GAIL opened gap up at Rs 178.25 with a gain of 2.03 per cent from the previous close of 174.70 on the BSE. The counter gained further and touched a high of Rs 186.50. This is a gain of around 6.75 per cent from the previous close. Last seen, the counter held firmly in green and was trading at Rs 182.90.
Similarly, shares of Public Sector Undertaking (PSU) Indraprastha Gas surged 2.5 per cent in the opening trade and started the session at Rs 203 against the previous close of Rs 198.05 on the BSE. It gained further to touch the high of Rs 210 – a gain of 6.03 per cent from the previous close. The counter held firmly in green and was trading at Rs 203.25 on the BSE at the time of writing the report.
PNGRB’s tariff regulations
The surge in prices comes as PNGRB has initiated the process to amend the Natural Gas Pipeline Tariff Regulations, 2008. It has invited public comments on proposed amendments to natural gas tariff regulations.
The amendments are aimed at bringing more flexibility in tariff structures through updated cost pass-through mechanisms and volume-based assumptions.
Brokerage firm Morgan Stanley believes that the proposed changes could accelerate India’s natural gas adoption, increasing its share in the energy mix from 6 per cent to 15 per cent.
Meanwhile, Equity benchmark indices Sensex and Nifty surged in early trade on Monday amid fresh foreign fund inflows and buying in blue-chip stocks.
A positive trend in the US markets also powered the rally in the domestic equities.
The 30-share BSE benchmark Sensex jumped 592.78 points to 77,498.29 in early trade. The NSE Nifty surged 169.3 points to 23,519.70.
