State-run oil companies rallied on local media reports the government has agreed in principle to price diesel market-determined.
"In principal (this) is a big dream, I don't see this till 2014. We are estimating a maximum Rs 3-5 hike in this fiscal year," said Ashutosh Bhardwaj, senior analyst at Nirmal Bang's institutional equities division.
Bharat Petroleum Corp gains 2.1%, HPCL rose 0.9%, and Indian Oil Corp rise 1.3%.
