How does Union Budget affect Gas sector stocks today?
In the union budget, notably, the finance ministry announced the addition of 100 cities to the city gas distribution network, which further help shimmer the stock of gas companies. The government informed that the pipelines of GAIL (India) Ltd, Indian Oil Corporation (IOC) and HPCL will be monetized.
The government also announced a new gas pipeline project for Jammu & Kashmir. Ujjwala scheme, which offers free cooking gas connections to poor women, will be extended to cover 1 crore more beneficiaries. Currently, the Ujjwala scheme has 8 crore beneficiaries. The government also announced the setting up of independent gas transport system operators, which would be set up for facilitation and coordination of booking of common carrier capacity in all-natural gas pipelines on an open-access basis.
With an independent gas transport system, all gas marketers will have equal access to the common carrier part of the gas pipelines and will be able to book capacity depending on its availability.
Reacting to the development, BSE Oil & Gas index traded 1.42 percent higher from its previous close of 14,007.86. Post budget announcement, IGL surged 3.08 percent, Gujarat State Petronet Limited (GSPL) surged 2.91 percent, Oil and Natural Gas Corporation (ONGC) inched higher by 2.09 percent while GAIL India increased 0.40 percent