Oil India Gains on Expectations of Higher Gas Output

29 September 2009 (Last Updated September 29th, 2009 18:30)

State-run explorer Oil India gained on its trading debut in Mumbai on expectations of increased prices and higher natural gas output. The company has previously raised 27.8bn rupees ($578m) in an initial offering. Shares climbed 9.1% to 1,145 rupees at 10.26am local time afte

State-run explorer Oil India gained on its trading debut in Mumbai on expectations of increased prices and higher natural gas output.

The company has previously raised 27.8bn rupees ($578m) in an initial offering.

Shares climbed 9.1% to 1,145 rupees at 10.26am local time after rising as much as 9.5%. The company sold shares at 1,050 rupees this month. The benchmark Sensitive Index gained 0.5%, wrote Bloomberg.

Indian energy companies, including Adani Power and state-owned NHPC, sold shares for the first time as the key stock index rebounded from a 2008 slump, poised for its best year since 1991.

Investors are betting that rising demand in Asia’s third-largest energy consumer will boost earnings, according to Bloomberg.

India may increase the regulated price of natural gas extracted from fields awarded to state explorers.

India produced 30.6 billion cubic metres of gas in 2008, according to the BP Statistical Review of World Energy June 2009.