Oil India, RIL and ONGC fizzle out
The top losers on the BSE today are the oil companies which had spurted up yesterday on hopes of the gas price hike going through. Currently Oil India leads the pack, down over 3%, RIL which is disappointed for its KG gas price hike is down almost 3% and ONGC is down over 2.5%.
These stocks are down because the Election Commissioner, who ideally should not have meddled with this gas price hike as this was a decision taken way back in February and had already decided on gas price hike coming in from 1st April. Yet, the EC has ordered deferment of this decision, saying that the decision should be left to the government that's formed after the general election. According to news reports, the EC asked the Oil Secretary to put off the price hike also because the matter is subjudice given the case file against the price hike, scheduled for hearing, beginning today.
Unfortunately, this has taken a political turn with AAP taking credit for this deferment, saying it was the only party which raised this issue. Well, for now the decision has been delayed but it’s a price hike which is inevitable and it is sure to come in once the elections are over and done with. Thus it’s a minor, temporary blip which the stocks are reacting to.