Essar Oil drops 2% on profit booking after 2-day rally

Essar Oil, one of the largest oil & gas producers in India, fell more than 2 percent on Thursday due to profit booking.

The stock had rallied nearly 24 percent in previous two sessions after the company received phase III environmental clearance for the Raniganj coal bed methane (CBM) block.

Essar Oil holds the largest coal bed methane exploration acreage in India. "This environmental clearance allows the full field development of the Raniganj block, excluding forest area, and will enable Essar Oil to increase production to the targeted level of around 3 million standard cubic metres of gas per day (scmd), up from 60,000 scmd currently," the company said in its release sent to exchanges on Monday afternoon.
 
At 09:44 hours IST, shares slipped 2 percent to Rs 88.20 on Bombay Stock Exchange.