Gujarat State Petronet Climbs Most in 18 Months on Court Order
Gujarat State Petronet Ltd. (GUJS), an Indian operator of natural gas pipelines, climbed the most in 18 months after India’s highest court yesterday allowed the industry regulator to award gas-pipeline projects.
The shares rose 5.8 percent to 104.1 rupees at 2:55 p.m. in Mumbai, set for their biggest gain since November 2009. The stock has lost 12 percent of its value this year, compared with a 8.9 percent drop in the Bombay Stock Exchange Sensitive Index.
The Supreme Court allowed the Petroleum and Natural Gas Regulatory Board to process and authorize pipeline projects and give licenses for sale of gas in cities, Press Trust of India reported yesterday, citing Justice Dalveer Bhandari, Justice V.S. Sirpurkar and Justice Deepak Verma.
“The Supreme Court order allows the regulator to award pipeline projects now, which had been held up,” said Durgesh Poyekar, an analyst at ULJK Securities Pvt., which recommends buying the stock. “Gujarat State Petronet is expected to win three pipeline projects.”
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