Oil explorers gain, tracking surge in oil prices
Jun 17 2014 , Mumbai
Oil India Ltd is up 1.4 percent, Oil and Natural Gas Corp gains 1.5 percent, while Cairn India is up 1.7 percent.
Brent crude futures held near $113 per barrel on Tuesday as concerns over oil supply persisted, with the United States considering air strikes in Iraq amid a worsening security situation in the key oil producing country.
Also, traders point out that shares of ONGC and Oil India are pricing in a scenario where 90 percent of the subsidy burden would be borne by them. However, the expected reforms such as reduction in diesel subsidy could bring down the subsidy burden on these companies.