Sensex up; oil companies extend recent gains

Reuters Market Eye - The Sensex gains 0.15 percent and the Nifty is up 0.12 percent.

Upstream oil and gas companies extend gains on hopes that a pricing formula recommended by a government-appointed panel will help sharply raise the prices of domestic natural gas.

Oil and Natural Gas Corp shares are up 1.2 percent, and have gained 6.4 percent in previous three sessions, while Cairn India Ltd gains 1.8 percent, adding to 5.4 percent gain in the previous two sessions.

Domestic shares are likely to consolidate as recent gains have come on the back of strong foreign inflows. Asian stocks drifted on profit-taking from a New Year rally that had pushed markets to multi-month highs.