Shares in Reliance Industries, Oil India fell on Wednesday after the government reduced the prices of domestically-produces gas for the April-September which will translate into lower earnings of these companies.
The government had yesterday cut the prices for domestically-produced gas by 8 per cent to $5.18/mmbtu on the back of falling global oil prices.
Analysts believe the fall in gas price may result in earnings downgrade for companies like ONGC, Oil India and Reliance Industries by 1-7 per cent for the fiscal year 2015-16.
Shares in ONGC, RIL and Oil India have underperformed the benchmark indices in last six months by falling between 11-23 per cent as against 7 per cent gain in the benchmark Nifty.
Technical analyst Imtiyaz Qureshi, co-founder and director at Investeria Financial Services said ONGC and RIL are near their long term supports, investors can by these stocks for long term.
ONGC shares ended 0.36 per cent higher at Rs 307.45, RIL closed 1.1 per cent higher and Oil India shares added 0.4 per cent against a 1.1 per cent gain in the benchmark Nifty.
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