Oxygen shares, real and imaginary, rally due to demand

With Indian Covid-19 patients struggling to find medical oxygen in the middle of a second deadly wave of coronavirus infections, shares in companies that produce the gas “or simply have it in their names” are rallying.

Bombay Oxygen, National Oxygen Ltd and Bhagawati Oxygen Ltd “all tiny firms not listed on any major stock index” have surged 47 per cent or more in April, a period in which India’s broader market has slumped two per cent.

Over the past few days, India has ramped up oxygen production nationwide as supplies of the gas have fallen short and infections surge. Hospitalised Covid-19 patients who are seriously ill often need supplemental oxygen to increase its supply in the blood and lungs.

Meanwhile, prices for oxygen cylinders in many parts of the country have more than doubled.

National Oxygen and Bhagawati Oxygen produce industrial gases including oxygen, but Bombay Oxygen ended its gas operations in 2019 and is now a nonbank lender, according to its latest annual report.

Formerly known as Bombay Oxygen Corp Ltd, it is now Bombay Oxygen Investments Ltd. Its shares have climbed 112 per cent since the start of April. They fell five per cent yesterday.

A portion of Bombay Oxygen’s website, however, still says it makes oxygen and other industrial gases. Reuters could not reach company representatives for comment.