Shares of fuel retailer Indian Oil Corporation (IOC) rose by over 3 per cent on Thursday, helping its market valuation surge past Rs.2 lakh crore, following a decision that state-owned firms will have price revision on daily basis in select cities from next month.

The scrip went up by 3.30 per cent to end at Rs.422.40 on BSE. During the day, it soared 4.84 per cent to Rs.428.70 -52-week high.

On NSE, the shares moved up by 3.21 per cent to close at Rs.422.40.

IOC apart, shares of HPCL gained 3.07 per cent and BPCL rose by 1.85 per cent on BSE.

Led by surge in the stock price, IOC's market valuation rose to Rs.2,05,113.43 crore.

With this the company became the ninth most-valued firm in terms of market capitalisation (m-cap). TCS remains the country's most-valued firm followed by RIL, HDFC Bank, ITC, ONGC, SBI, HDFC and Infosys.

In terms of volume, 6.19 lakh shares of the company were traded on BSE and over 77 lakh shares changed hands at NSE during the day.

Besides, IOC eight companies have a market valuation of more than Rs.2 lakh crore.

State-owned fuel retailers IOC, Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL), which own over 95 per cent of nearly 58,000 petrol pumps in the country, will launch a pilot for daily price revision in five select cities from May 1 and gradually extend it to all over the country.