Stock Market Today: ONGC, OIL India share prices gained up to 4% amidst rising crude price led by Israel-Iran Conflict. The ONGC share price was the largest gainer among Nifty-50 stocks despite stock market crash and benchmark Nifty declining more than 1%.
These upstream Oil producers stand among beneficiaries of rising crude prices. The rise in crude prices can help improve realisations for these Oil producers though rise in crude prices may not be favorable for may others.
“The economic consequences of this Israeli strike can be profound if the attack and counter attack by Iran lingers long. Israel has declared that the operation will last several days. Brent crude prices have flared up by around 12% to $78. It can rise further if Iran in retaliation closes the straight of Hormuz severely restricting oil supply” , said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited . While Sectors that uses oil derivatives as inputs like aviation, paints, adhesives and tyre will be hit hard. Oil producers like ONGC and Oil India will remain resilient, added Vijayakumar
