Shares of oil exploration companies such as Oil and Natural Gas Corporation (ONGC), Cairn India, Hindustan Oil Exploration and Aban Offshore have rallied on the bourses after crude oil prices crossed $90 mark amid economic data indicating the strongest US economic growth in 12 months and progress with the sovereign debt crisis in the euro zone.
On Thursday, euro zone leaders had struck a deal in which private banks and insurers would accept a greater loss on their Greek sovereign bonds. The deal would lower Greece's debt burden and includes recapitalising European banks and boosting the region's rescue fund, the report suggests.
Additional support came from data showing the US economy grew in the third quarter at its fastest pace in a year, bringing relief to investors who weeks ago feared the world's largest oil consumer would lapse into another recession.
Among the individual stocks, Hindustan Oil Exploration has rallied up to 8% to Rs 118, followed by ONGC (up 7%), Cairn India (up 5%), Oil India and Aban Offshore (up 2% each).
