Now Reading: ONGC closes at Rs 238, down 0.65% on weak crude outlook
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ONGC closes at Rs 238, down 0.65% on weak crude outlook
ONGC shares ended at Rs 238.0 on Wednesday, declining 0.63% on the day, as the stock continued to reel from a near-20% drop over the past three months. The company's market capitalisation stood at Rs 2,99,410 crore, with volumes at 1.73 crore shares traded. The price-to-earnings ratio was 6.88 and earnings per share Rs 34.59.
The stock briefly crossed its second resistance level of Rs 241.40 but closed below it. It also rose above its 20-day simple and exponential moving averages midway during the session, signalling some short-term buying interest. However, a weak view on crude oil from JM Financial, calling for Brent to stay near $80 for 12 months, has weighed on sentiment for upstream oil firms like ONGC.
Indian Opinion Analysis
ONGC's 52-week high stands near Rs 340, hit in mid-2025, giving a rough 30% downside from the current share price. The stock trades at a P/E of 6.88 and has a trailing dividend yield of around 5.5%, making it a classic value play that depends heavily on crude oil prices for earnings. The next trigger for the sector will be the OPEC+ meeting in early September, where output targets for the fourth quarter of 2026 are set. For ONGC's valuation to stabilise, a sustained rise towards $85 per barrel is needed, which would raise realisations and improve its net realisation.
Source: economictimes.indiatimes.com
This story was synthesised by AI from the source linked above. Methodology and corrections.
