India’s oil and gas index up 3.5% from Wednesday
Several of India’s oil companies’ stocks are up today, recovering from sharp falls earlier in the week. The gains made by the companies led to a rally in the country’s energy index of over 3% since Wednesday.
Many of India’s oil companies were feeling the pressure of lower oil prices and the global supply glut, leading to sharp declines in stock prices earlier in the week. Stocks from many of the country’s oil majors, including Oil India Ltd. (ticker: OIL), Oil & Natural Gas Corporation Ltd. (ticker: ONGC) and GAIL Ltd. (ticker: GAIL), had trended downward from the beginning of 2015.
Stocks rebounded following news that the Modi government would exempt some companies from subsidizing oilthose. Previously, crude oil being sold downstream was capped at $56 per barrel, but with prices below that point, the Indian government has decided to rework the subsidy program and to exempt companies like ONGC and OIL from payments for the rest of the fiscal year.
At 4:05 local time today, OIL stocks were up to Rs565.20 ($8.94) from Rs532.85 ($8.43), a 6% increase. ONGC stocks were up to Rs351.00 ($5.55) from Rs333.15 ($5.27), up 5%, and GAIL stocks were at Rs435.30 ($6.89), up 3% from Rs420.90 ($6.66). The overall BSE Oil & Gas Index was up 3.5% at 9840 from 9498 on Wednesday.
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