NIFTY 50

Key factors why Gail buzzing in trade

Updated : May 11, 2021 16:29:00 IST

There are many factors that pushed Gail share to rise and one of them is higher spot liquefied natural gas (LNG) prices. The price surged nearly 72 percent from the lows seen in March 2021 and Brent is up 84 percent from the lows seen in October 2020. These are positives for GAIL because sales of the public sector companies are linked to higher oil prices.

Therefore, it means that they can sell their contracts that is Henry-Hub linked contract at higher prices and that would bode well for the company. Apart from that, supply disruptions have led to higher petrochemical prices and that would bode well for their petrochemical business.

Watch the accompanying video of CNBC-TV18’s Sonal Bhutra for more details.
cnbc two logos
To keep watching CNBC-TV18, India's No. 1 English Business News Channel, call your Cable or DTH Operator and subscribe now for just Rs. 4 per month. You can also subscribe to CNBC-TV18 Prime HD for Re 1/- per month.Find out more
Live TV

recommended for you