Oil & gas stocks recover; RIL leads

Oil and gas stocks were back in the limelight to close over 2 pct,supported by cooling crude prices.

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Oil and gas stocks,led by Reliance Industries,were back in the limelight to close over 2 per cent up on the Bombay Stock Exchange (BSE),supported by cooling crude oil prices in the global market.

The BSE oil and gas index emerged as the best performer among sectoral indices by rising 217.93 points,or 2.24 per cent,at 9,936.95 points as heavy-weight Reliance Industries and state-run oil companies stocks rallied.

Meanwhile,the BSE benchmark Sensex surged 265.39 points,or 1.46 per cent,at 18,439.48.

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Sentiments in refiners’ stocks improved,after crude oil prices declined in the global market on speculation the disastrous earthquake in Japan will reduce demand.

The crude has declined to a two-week low of USD 99.10 per barrel in the global market.

“Easing pressure on the state-run oil companies,following a decline in crude oil prices in global market was the major factor behind today’s run-up in oil sector stocks,” said Manoj Choraria,a Delhi-based stock broker.

The most-weighed on the Sensex,Reliance Industries stocks shot up by 2.63 per cent to close at two-month high of Rs 1,017.75 after moving between Rs 991.80 and Rs 1,020.

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State-run oil marketing companies,which import oil,climbed on the back of lower global crude prices.

Stocks of BPCL rallied by 4.36 per cent to Rs 570.50,HPCL gained 4.26 per cent to Rs 334.25,Indian Oil Corp up by 1.54 per cent to Rs 309.90 and Oil India by 0.74 per cent to Rs 1,280.10.

Shares of Cairn India also ended 5.05 per cent up at Rs 346.20 on hopes the government might approve the company’s acquisition by Vedanta Resources.