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Jubilant FoodWorks leads gainers in 'A' group

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Capital Market
Last Updated : Jun 24 2014 | 11:50 PM IST

Gujarat State Petronet, HPCL, Jet Airways (India) and Petronet LNG are among the other gainers.

Fast food chain operator Jubilant FoodWorks jumped 7.34% to Rs 1,308.40 after a foreign brokerage upgraded the stock to buy with a target price of Rs 1,500 per share. The stock topped the gainers in the BSE's 'A' group.

Gujarat State Petronet, which operates natural gas transmission network, galloped 7.18% to Rs 82.05. The stock was second biggest gainer in 'A' group.

Gas utility stocks surged on reports that the government may soon finalise hike in natural gas prices and that the price hike will be lower than that as per a formula adopted by the previous UPA government that recommended doubling the price.

The discussions between the oil ministry and Prime Minister's Office over the weekend suggest that gas price may be jacked up from $4.2 a unit to $5.5-6.8 per unit, report said. This increase will be lower than the price of $8.4 per unit that was expected based on the formula adopted by the UPA government. The UPA government had approved a new formula for pricing all domestic gas from 1 April 2014. However, gas price revision could not be implemented because of the electoral code of conduct due to Lok Sabha elections in April-May 2014.

Public sector oil marketing company HPCL spurted 7.10% to Rs 418.70 as crude prices eased. The stock was third biggest gainer in 'A' group. Brent oil futures for August delivery were marginally higher by 6 cents at $114.18 a barrel. The contract fell 0.6% to settle at $114.12 on Monday, 23 June 2014, the biggest percentage drop since 16 May 2014.

Air carrier Jet Airways (India) climbed 6.60% to Rs 260.95. The stock was fourth biggest gainer in 'A' group. Aviation stocks rose as crude oil prices eased. The price of aviation turbine fuel (ATF) or jet fuel is directly linked to international crude oil prices. Jet fuel constitutes about 40% of airlines' operating cost.

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Petronet LNG, which is engaged in regasification of liquefied natural gas (LNG), rose 6.58% to Rs 186.25. The stock was fifth biggest gainer in 'A' group.

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First Published: Jun 24 2014 | 4:15 PM IST

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