Great opportunity in OIL, ONGC and RIL sectors after government announcement

Great to have news like on Friday, the Cabinet Committee of Economic Affairs (CCEA) has announced to raise gas price to US$8.4/mmbtu effective April 2014 for a period of five years.
(Source: http://economictimes.indiatimes.com/markets/stocks/stocks-in-news/oil-gas-stocks-rally-on-gas-price-hike-ongc-spurts-10/articleshow/20810262.cms)

Headed by Prime Minister's economic advisor C Rangarajan, the new price will be applicable to both private as well as public sector units and will be revised on a quarterly basis.

According to Angel Broking Experts, "estimate ONGC's EPS to rise by 4-7 per cent for every US $1/mmbtu increase in gas price. Reliance Industries EPS is expected to increase by only 2-5% in FY2015 on account of increase in gas prices as production has declined from its KG D6 basin to 18mmscmd (against targeted 60mmscmd)".

The higher gas prices will incentive upstream companies to raise production from newer blocks.

For the same purpose, various LIVE tenders issued by various Oil and Power companies can easily be found at:

http://tenders.indiamart.com/indian-oil/

http://tenders.indiamart.com/ongcindia/

http://tenders.indiamart.com/oil-india/

and many such others.

Due to this optimistic news for the sector, the sensex also surged to more than 320 points and nifty by around 100 points. These stocks has also got a lot of potential if everything goes well.