The oil and gas sector surged as much as 0.46 per cent in the morning trade on the Bombay Stock Exchange ahead of the Empowered Group of Ministers (EGoM) meeting to decide petrol and diesel price hike.
The BSE-Oil&Gas index rose 48.11 points to touch an intra-day high of 10,355.09 points but then slipped 0.26 per cent to 10,280.55 points at 1003 hrs.
Oil and gas major ONGC rose as much as 1.38 per cent in the morning trade to touch Rs 1,205, on the BSE, even in the weak broader market. Shares of Oil India were quoting at Rs 1,308.55, up 0.65 per cent.
Meanwhile, the BSE 30-share benchmark Sensex was trading at 17,598.34 points, down 0.74 per cent from previous close.
The EGoM are meeting today to zero in on the increase in petrol and diesel rates in order to lower the subsidy burden on the oil producing and marketing companies.
According to official sources, petrol prices may rise by Rs 3.73 a litre and diesel prices may go up by Rs 2 per litre instead of the Rs 3.80 hike needed to make it market-linked.
EGoM may also go with Oil Minister Murli Deora's proposal to free petrol prices from the government control.
Also on the cards is a Rs 25 per cylinder hike in domestic LPG rates and a marginal increase in kerosene prices.
The other counters in the sector also showed strength with GAIL India rising 0.62 per cent to Rs 478.15. Cairn India was trading at Rs 310, up 0.37 per cent, while Indian Oil Corp gained 1.75 per cent at Rs 347,80.
BPCL and HPCL were trading at Rs 556.40 and Rs 356.60, up 1.04 and 1.06 per cent, respectively.
A spurt was seen in the counters of Essar Oil and Aban Offshore too. Essar Oil was trading at Rs 130.65, up 0.97 per cent, and Aban Offshore was up 1.10 per cent at Rs 752.10.
However, the country's most valued firm Reliance Industries was trading under pressure at Rs 1,046.15, down 0.49 per cent. Reliance Natural Resources Ltd (RNRL) was also quoting 0.23 per cent lower at Rs 63.70.