Adani Total Gas shares have risen almost 28% in just two trading sessions.
On March 11, as the broader Indian stock market resumed its collapse in the fallout from the US-Israel-Iran war, shares of the urban gas distributor soared 20%. The next day, it rebounded again, jumping another 7%, far surpassing the levels it was trading at before the conflict in West Asia began in late February.
But that is far from normal.
Indeed, the ongoing war and the resulting near-closure of the Strait of Hormuz, a vital global trade artery, have suffocated companies that rely on imports. Kenon March 4, wroteKenHow the Iran war put Petronet LNG in a desperate situation how the war had put Petronet LNG, India’s largest gas importer, in a desperate situation.
More than half of India’s natural gas needs are imported, and much of it is channeled through this narrow waterway. Therefore, a disruption there would also put pressure on city gas distributorsCity gas distributorsUrban gas distributors (CGD) supply compressed natural gas (CNG) to vehicles and piped natural gas (PNG) to homes, commercial establishments and industries in authorized areas.like Adani Total Gas and others including Gujarat Gas, Indraprastha Gas and Mahanagar Gas, which also depend on companies like Petronet to meet customer demand.
In fact, Adani Total Gas had saidThe economic timesAdani Total Gas asks industrial users to limit consumption to 40%; Warns of higher spot prices its industrial and commercial users limit consumption to less than half of their contracted volumes or pay more than double the contracted price for the excess, while Gujarat Gas declaredThe economic timesGujarat Gas restricts industrial supply and invokes force majeure Force Majeure on its gas supply agreements with industrial users.
However, its shares rose.
Apart from Adani Total Gas, in a falling market, shares of Mahanagar Gas, Indraprastha Gas and Gujarat Gas have risen by 1-4% between March 10 and March 12.