ONGC shares surge 10%, hit new 52-week high as crude oil breaches $81 per bbl – check Anil Singhvi’s view

Amid higher crude oil prices, the shares of state-run Oil and Natural Gas Corporation (ONGC) have jumped 10 per cent and touched a fresh 52-week high of Rs 162.35 per share on the BSE intraday trade on Tuesday.

The company has reclaimed the Rs 2-trillion market capitalisation mark today: PTI

Amid higher crude oil prices, the shares of state-run Oil and Natural Gas Corporation (ONGC) have jumped 10 per cent and touched a fresh 52-week high of Rs 162.35 per share on the BSE intraday trade on Tuesday. The company has reclaimed the Rs 2-trillion market capitalisation mark today.

The government-owned oil exploration and production (E&P) company’s stock has been trading at its highest level since November 2018.

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At around 01:40 pm, the counter has been trading near a 52-week level high at Rs 160.95 per share, up 9 per cent on the BSE as compared to 0.37 per cent rise in the S&P BSE Sensex. In the last one month, it has surged 31 per cent, as against a 2 per cent rise in the benchmark index.

According to the Reuters report, “The Organization of the Petroleum Exporting Countries, Russia and their allies, known as OPEC+, have faced calls from big consumers, such as the United States and India, for extra supplies after oil prices surged more than 50 per cent this year.”

Brent crude roared above $81 a barrel on news that the group would stay with its plan for gradual additional production, rather than offering more supply to the market, the report said.

The oil prices hit a three-year high with OPEC+ decided to continue with their oil supply plan in their latest meeting. They agreed to increase oil supply by 400K BPD in November as per the earlier plan.

Zee Business Managing Editor Anil Singhvi while decoding the good part of oil price rise said that it shows the economy is returning back to normalcy. the rise in crude oil price is not due to the geopolitical situation but rather due to the rise in economic activity and eventually the surge in demand, he added.

On the contrary, the managing editor says, the rise in crude price will certainly burden India’s import bill and may give rise to inflation, as interest rates would eventually increase.

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