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.

(Edited by : Bivekananda Biswas)