Updated: February 18, 2021 1:31:59 pm
Shares of natural gas companies rallied to their 52-week highs during the intraday trade on Thursday after Prime Minister Narendra Modi announced that his government is committed to bringing natural gas under the ambit of Goods and Services Tax (GST).
Gujarat State Petronet stock climbed as much as 15.61 per cent to a 52-week high of Rs 276.60 on the BSE, while Indraprastha Gas surged 9.18 per cent to its 52-week high of Rs 594.85 apiece. GAIL (India) too rose 9.97 per cent to its 52-week high of Rs 147.75 per share, while Oil and Natural Gas Corporation (ONGC) gained 8.71 per cent to a 52-week high of Rs 111.10. Petronet LNG stock inched 3.87 per cent to hit an intraday high of Rs 249.80.
Led by the steep rally in the gas stocks, the S&P BSE Oil & Gas index too climbed 5 per cent to hit its 52-week high of 15,725.86 earlier in the day. At 12:50 pm, the index was trading at 15,625.58, up 648.51 points (4.33 per cent).
Here’s how the oil and gas stocks were performing:
Prime Minister Narendra Modi on Wednesday said that the government is committed to bringing natural gas under the GST, to reduce the cost of natural gas and boost its usage across the country.
“We are committed to bringing natural gas under the GST regime. I want to tell the world, come, invest in India’s energy,” the prime minister said at a foundation stone laying ceremony for key oil and natural gas projects in Chennai.
The inclusion of petroleum and natural gas in the GST regime has been a consistent demand of the industry, which has noted that the cascading impact of central taxes and different tax regimes across different states was leading to higher prices for end consumers. Industries that use natural gas as an input, such as power and steel, are currently not able to claim input tax credit (ITC) on central and state taxes paid on natural gas.
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