Stock Market Today: ONGC, Oil India share prices gained up to 5% in the morning trades on Thursday on surging Crude Oil prices. The rising Crude prices improve outlook on the net realisations these upstream oil producers earn.
Brent Crude price surge
The crude prices have been rising with increasing geopolitical tensions. The Brent Crude price that had dipped to close to $60 a barrel levels ($61 a barrel level) in April has now risen to $69 a barrel levels.
“The spike in Brent crude to $70 is on heightened security risks in the Middle East. ONGC and Oil India can respond positively” said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments.
ONGC OIL India – Rising crude prices raise hopes of earnings growth
The declining crude price had been a concern for ONGCb or Oil and Natural Gas Corporation Ltd and Oil India earnings outlook and hence a rise now improved investor sentiments
For the past three months (till 23 May) , the stock price of ONGC had been flat, underperforming benchmark Nifty Index (which was up 8%), due to a downtrend in oil price (which offset emerging visibility on growth in oil & gas production in the next three years), Elara Securities had observed.
ONGC Net realisation prior to windfall tax had declined around 9% year on year in the January-March 2025 quarter with declining crude prices. Hence any rise in crude price raises investor optimism on earning growth of the companies. To be sure the crude prices need to sustain the higher levels.
Oil and Natural Gas Corporation or ONGC share price opened at ₹251.05 and surged to intraday highs of ₹255.15. This meant gains of more than 3% for ONGC share price during the intraday trades on Thursday.
Oil India share price opened at ₹473.05 and further rose to intraday highs of ₹488.80. This translated gains of close to 5% for Oil India share price during the intraday trades on Thursday.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
