Investors keep on looking for sectors and companies that will help them to outperform the broader equity market. One of the sector with some of the robust companies that comfortably can beat the performance of BSE 500 is Gas sector.
A series of regulatory changes, better economic growth accompanied with consistent focus on climatic changes will act as perfect tailwind for Gas Stocks in short term and long term.
This is exemplified by share price movements of some companies, for example share price of Mahanagar Gas Ltd. is up by 27 per cent in last one year ending March 31, 2023, compared to negative return of 2 per cent by BSE 500 in the same period. Even a PSU company like GAIL was able to outperform BSE 500 by seven per cent in last one year.
In last one year, when most of the sectors were struggling to generate alpha, gas sectors stocks are the one that standout in their performance. They remain favourable in short as well as in long run. Recently, there was some volatility in stock prices, we believe it was temporary in nature. The fall happened, because an expected yet much-awaited announcement by the government, didn’t happen in time. On Friday (March 31, 2023), the government said that it will provisionally keep the price of locally produced gas from old fields at USD 8.57 per million metric British thermal units (mmBtu). In fact domestic gas prices were to undergo a revision. It was to be implemented on First April 2023, based on the report submitted to the government by a committee led by Kirit Parikh.
Now, the Cabinet has implemented the committee report and gas stocks are once again rising.
Denne historien er fra April 2023-utgaven av Indian Economy & Market.
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Denne historien er fra April 2023-utgaven av Indian Economy & Market.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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