Battered gas stocks recover after IGL moves Court

Stocks of gas companies that were hammered down on Tuesday, showed signs of recovery, after IGL decided to move the Delhi High Court following an order by the Petroleum and Natural Gas Regulatory Board (PNGRB) asking it to cut tariff.

IGL was trading up 0.48%, Gujarat Gas was up 0.39%, while Gail was was marginally down at 0.45%.

Gas stocks had tanked on Tuesday, after an order from the Petroleum and Natural Gas Regulatory Board (PNGRB) asking companies to cut rates for CNG & PNG to Delhi consumers.

PNGRB's approved tariff is substantially lower and will affect players like Indraprasatha Gas Ltd (IGL). According to estimates the PNGRB's order is at least 60% lower than that demanded by Indraprastha Gas.

IGL has now approached the Delhi High Court challenging the constitutionality and legality of the powers of the Board to fix the tariff. The stock had crashed almost 30% on Tuesday following the PNGRB directive.

GoodReturns.in