Reuters Market Eye - Shares in oil and gas explorers gain on media reports that a government committee is meeting later in the day to contemplate a hike in natural gas prices, dealers say. Oil and Natural Gas Corporation
"Gas contributes around half of ONGC and Oil India revenues, therefore their annualised profits could rise by 10-12 percent if prices are hiked," said an analyst tracking the sector at a domestic brokerage house.
However, dealers also add that the government may offset the benefit of a price hike by increasing the subsidy burden on upstream companies.
(Reporting by Abhishek Vishnoi)
