Led by BPCL, state-run oil companies rallied in morning trade on the BSE today after the government announced a hike in fuel prices to ease pressure on their margins.
Shares of Bharat Petroleum Corporation Ltd (BPCL) surged by 8.29% to touch a month's high of Rs 687 on the BSE, while Hindustan Petroleum Corp Ltd (HPCL) gained 6.12% to touch a one-month high of Rs 416.55.
Indian Oil Corp also saw buying interest, with the scrip shooting up by 6.79% to a month's high of Rs 360.
Flagship exploration firm Oil & Natural Gas Corp advanced by 9% to hit a month's peak of Rs 297.40, while Oil India was trading higher by 6.24% and GAIL (India) by 2.03%.
Led by gains in these stocks, the BSE Oil & Gas index was trading at 9,221.89, up 1.97% and was the top performer among the sectoral indices.
The government on Friday increased diesel price by Rs 3 per litre, domestic LPG by Rs 50 per cylinder and kerosene by Rs 2 per litre, which would help the oil companies reduce their revenue loss by Rs 21,000 crore.
Meanwhile, the BSE benchmark Sensex was trading higher by 140.14 points at 18,380.82 at 1025 hours.