Gas distribution companies' shares rally; Indraprastha Gas surges 10%

The new price for domestic natural gas is the lowest in six years since the Narendra Modi government introduced the new pricing formula in November 2014

Shares of city gas distribution companies rallied up to 10 per cent intra-day on the BSE on Wednesday after the government cut the domestic natural gas price for the April-September period to $2.39 per million British thermal unit (mBtu).

Among individual stocks, Indraprastha Gas surged 10 per cent to Rs 427.70 and Gujarat Gas gained 6.04 per cent to Rs 246.65. Adani Gas was up 5.5 per cent while Mahanagar Gas and GAIL India were both up over 2 per cent each in an otherwise weak market. In comparison, the S&P BSE Sensex was down 3.5 per cent at 12:14 PM.

The