ONGC shares dip on profit fall reports

MUMBAI: Shares of ONGC took a beating amid reports that company could report a drop in 2008-09 profit as the government plans to ask it to bear a bigger subsidy burden to compensate state fuel retailers who sell fuel at state-set low prices.

At 11:50 am, the stock edged 2.78 per cent lower to Rs 808.70, recovering from a low of Rs 802 made in early trade.

Any move to ask ONGC to bear more of the consumer subsidy on fuels could hit the company���s plans to go in for deep-water exploration in the KG Basin where it proposes to dig deeper than any existing deep-water well in the world, according to media reports.