Amid a deadly wave of coronavirus infections in the country and shortage of medical oxygen in India, certain gas makers stocks have caught the eye of the investors amid the surge in demand for oxygen as the sharp spike in Covid cases has overwhelmed India’s healthcare system. Many hospitals in India are grappling with a shortage of oxygen supply amid spiralling Covid-19 cases.
Oxygen manufacturer Linde India Ltd. has gained more than 90% so far this year. The company is a supplier of medical oxygen to hospitals and industrial gases to corporations. It is primarily engaged in manufacture of industrial and medical gases and construction of cryogenic and non-cryogenic air separation plants.
Other gas makers like National Oxygen Ltd shares have also advanced 59%. Shares of Gagan Gases Ltd and Bhagwati Oxygen have also been rallying this month.
India clocked in over 3 lakh Covid cases for the second day in a row on Friday. As many as 3,32,730 more people tested positive for Covid-19 in the last 24 hours, taking the cumulative caseload to 16,263,695, the Union health ministry said on Friday morning.
The most surprising rally has been that of a company who has ‘Oxygen’ mentioned in its name. Bombay Oxygen ended its gas operations in 2019 and is now a non-bank lender, according to its latest annual report. However, shares in the firm with a market cap of $44 million have gained 132% from a January 29 low.