Crude shock for ONGC
ONGC shares have always fallen in the past in the event of sharp jumps in crude oil prices on fears that the company may have to bear a larger chunk of the oil subsidy burden along with the oil marketing companies.
By TNN |
ONGC shares have always fallen in the past in the event of sharp jumps in crude oil prices on fears that the company may have to bear a larger chunk of the oil subsidy burden along with the oil marketing companies.
However, this time around it has bucked the trend and risen 6% over the last weak, outperforming the broader market.
Though fears remain that rising crude prices could lead to higher share of subsidy burden for the company, investors are bullish on the company’s cash position and are betting on the company’s proposed acquisition plans of overseas oil fields. A private mutual fund has made small purchases in the stock on Thursday.
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
