Shares of eight state-run oil firms gained 0.09% to 7.13% at 11:20 IST on BSE on media reports that the government is set to start consultations for an ambitious plan to merge 13 state-run oil firms to create an oil sector giant.
Meanwhile, the S&P BSE Sensex was up 123.14 points or 0.44% at 27,926.38
Shares of state-run oil marketing companies (PSU OMCs) rose. BPCL (up 1.97%), HPCL (up 3.29%) and Indian Oil Corporation (up 3.85%) edged higher.
Stocks of state-run oil exploration and production firms rose. ONGC (up 1.15%) and Oil India (up 0.09%) edged higher. Shares of state-run gas transmission major GAIL (India) rose 0.49%. Among refiners, Mangalore Refinery and Petrochemicals (MRPL) surged 7.13%. Chennai Petroleum Corporation (CPCL) jumped 7.09%.
According to reports, the mega merger of 13 state-run oil firms will include ONGC, Oil India, GAIL (India), Indian Oil Corporation, BPCL, HPCL, GAIL (India), Mangalore Refinery and Petrochemicals (MRPL), Chennai Petroleum Corporation (CPCL) and Numaligarh Refinery. According to media reports, the government is also evaluating if the consolidated entity can include all non-corporate government bodies in the oil sector such as Oil Industry Development Board (OIDB), Petroleum Planning and Analysis Cell (PPAC) and Petroleum Conservation Research Association.
Meanwhile, in the global commodities markets, Brent for September settlement was currently down 5 cents at $45.64 a barrel. The contract had fallen 51 cents or 1.1% to settle at $45.69 a barrel during the previous trading session on Friday, 22 July 2016.
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