Sell-Off Hits City Gas Distributors as Stocks Come Under Pressure

6 Mar 2024 , 01:36 PM

One day after MGL reduced the price of compressed natural gas (CNG) by ₹2.5 per kilogramme, this resulted in a sharp decline in the shares of Indraprastha Gas Ltd and Mahanagar Gas Ltd.

Mahanagar Gas saw its worst-ever single-day decline of over 16%, while Indraprastha Gas saw a 7% decline in stock following an MGL price decrease to ₹73.50 per kg.

A decrease in the cost of petrol input led to the price reduction, MGL informed markets on March 5. It stated that in Mumbai, CNG now offers savings of 53% over petrol and 22% over diesel at the current levels.

IGL was down 6% from the previous closing at ₹429.90 on the National Stock Exchange (NSE) at 12:23 am. In contrast to the average trading volume of 18 lakh equity shares over the course of a week and a month, as many as 55 lakh IGL shares had exchanged hands on the BSE and NSE combined.

Mahanagar Gas shares were down 16% at ₹1,314.20 on the NSE at 12:23 p.m.

IGL’s stock has dropped more than 4% over the last year, lagging the benchmark Nifty 50, which has increased by 26% in the same time.

For feedback and suggestions, write to us at [e-mail]