1 / 3Nomura | Japan-based global brokerage says that upstream gas producers are the key beneficiaries of the hike and it is negative for gas consumers. GAIL is likely to be worst impacted with end prices market linked. It further added that sharp price hikes might hurt India's gas demand and the pricing formula needs a relook.
2 / 3Morgan Stanley | The global brokerage prefers gas producers such as ONGC and Reliance Industries Ltd, while retains 'underweight' stance on gas midstream players such as Petronet LNG and Gujarat Gas. It further expects a 25 percent hike in October as gas markets remain tight.
3 / 3CLSA | The brokerage sees it as big positive for ONGC and Oil India with a massive upside of up to 160 percent. It further adds that reforms are not likely to be rolled back amid high energy prices and the hike should be manageable for IGL or MGL if the domestic gas supply is reinstated although October 2022 hike may remain a lingering concern on the second half margin for the two companies.
